BRASILIA (From news reports) - U.S. printing company RR Donnelly & Sons Co is closing its Brazilian operations and exiting the country as the domestic magazine and book industries struggle, the company said in a statement on Tuesday.
The Chicago-based company has filed for bankruptcy in Brazil, according to Brazilian newspapers Valor Economico and Folha de S.Paulo.
The multinational printer said it had seen a significant reduction in order volumes and had recently lost a major client.
The print media sector in Brazil, already suffering from a global decline with the rise of the internet, was also hit by a savage recession in 2015-16.
In recent years, major bookstore chains Saraiva SA Livreiros Editores and Livraria Cultura as well as magazine publisher Grupo Abril have also sought for bankruptcy protection.
"Among the factors that led the group to take this measure are the current market conditions in the traditional printing and publishing industry, which are difficult everywhere but especially Brazil," the statement said.
RR Donnelly said it would contact the workers' trade union and "evaluate the possibility of terminating all employment contracts in coming days" to reduce the impact of bankruptcy.
