Wow. A struggling company that is actually trying to reorganize. Somebody let the president know about this.
Chicago Sun-Times files for bankruptcyPosted: 09:59 AM ET
CHICAGO, Illinois (CNN) — The company that owns the Chicago Sun-Times and 58 other newspapers and online sites said Tuesday it had filed for Chapter 11 bankruptcy.
The Sun-Times Media Group, Inc. said it would continue to operate its newspapers and Web sites as usual while it improves its cost structure and stabilizes operations.
Tuesday’s announcement comes amid a raft of newspaper closings and cuts that has seen the end of The Rocky Mountain News in Denver, Colorado; The Seattle Post-Intelligencer, and The Christian Science Monitor.
The chain that owns the Los Angeles Times and the Chicago Tribune is in bankruptcy and other papers are on the brink. And two industry giants, The Washington Post and The New York Times, announced last week they are cutting costs and staff amid tumbling revenue and continued economic decline.
The Sun-Times said similar cost-cutting measures failed to turn around the company’s fortunes.
“The significant downturn in the print advertising environment that has affected newspapers across the country has continued to severely impact us,” said Jeremy Halbreich, chairman and interim chief executive of the Sun-Times Media Group. “Unfortunately, this deteriorating economic climate, coupled with a significant, pending IRS tax liability dating back to previous management, has led us to today’s difficult action.”
Halbreich said the company would explore the potential sale of assets or new investment in the company to help it remain viable.
At least 120 newspapers in the United States have shut down since January 2008, according to Paper Cuts, a Web site tracking the newspaper industry. More than 21,000 jobs at 67 newspapers have vaporized in that time, according to the site.
Newspapers have struggled to meet challenges posed by changing reader habits, a shifting advertising market, an anemic economy, and the newspaper industry’s own early strategic errors.
“We provide the area’s best source of local news and information and remain committed to continuing to serve our readers, advertisers, and communities,” Halbreich said. “We have enjoyed a long, rich history in the Chicago area and our goal is to preserve and sustain these strong print and online news and information assets that are such an integral part of the fabric of Chicago and its neighboring communities.”
The company said it expects the Chapter 11 process to be completed this year.
http://cnnwire.blogs.cnn.com/2009/03/31/chicago-sun-times-files-for-bankruptcy/
