The Reading Eagle Company has filed a notice that it could lay off a significant part of its workforce.
The company submitted a notification to the Pennsylvania Department of Labor stating that layoffs may happen early next month.
The warning comes as the company, which publishes the daily Reading Eagle newspaper and owns WEEU radio, seeks a new owner.
Wednesday is the deadline for potential buyers to submit bids.
A judge has scheduled an auction for Friday morning if multiple offers are submitted.
The Reading Eagle Company filed for bankruptcy protection earlier this year, citing a loss of ad revenue and increased production costs.