Benedek declared bankruptcy and sold most of its stations to Gray Television in 2002, but KHQA was sold to Chelsey Broadcasting. KHQA and WHOI in Peoria became the first two stations owned by the newly formed Barrington Broadcasting in April 2004. In early 1998, KHQA left its longtime home in the Western Catholic Union building in downtown Quincy. The station moved into a new state-of-the-art facility located on South 36th Street. On August 28, 2007, KHQA announced that a new second digital subchannel would begin carrying ABC for the Tri-States, replacing sister station KTVO (which had been ABC's affiliate of record in the Quincy market). This was launched on September 30.