THE Big Apple has proved hard to swallow for Metro International, the world’s largest free-newspaper company.

Metro executives are discussing options for its American titles. If the firm cannot find partners, it may have to fold the papers, starting with the loss-making New York edition.

Chief executive Per Mikael Jensen said: “What we have been doing in the US is to look at all options. That means going into partnership with others or divesting.”

The news comes as ad sales slump in America. The New York Times recently announced that advertising revenue fell 16% in July.

Metro is published in 54 countries and 154 cities. In Paris, Metro is now the largest-circulation daily. The UK titles in London, Manchester and other cities are separate entities published by Associated Newspapers . Metro opened in Philadelphia in 2000, Boston in 2001 and New York in 2004. In July the Luxembourg-based company announced a net loss of €1.9m (£1.5m) for the second quarter compared with a net profit of €1m in 2007. Spain and the US accounted for most of the losses.

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