Chicago Sun-Times Files For Bankruptcy

 

CHICAGO, IL (March 31, 2009) – The company that owns the Chicago Sun-Times and 58 other newspapers and online news sties has filed for Chapter 11 bankruptcy, the Sun-Times Media Group said today.

Chairman and interim CEO Jeremy Halbreich said the company would look at potentially selling assets or seek new investors to stay viable. He said the deteriorating economic climate combined with tax liabilities "dating back to previous management" forced today's bankruptcy filing. Halbreich said recent cost-cutting measures had not been successful in offsetting the continuing decline in advertising revenue.

The Sun-Times will continue to operate as usual, the company says, while it "improves the cost structure and stabilizes operations." They listed debts today of $801 million.

Now both major Chicago dailies have hit bankruptcy. The Tribune Co., owner of the Chicago Tribune, filed for bankruptcy December 8, 2008, after piling up $13 million in debt. In just recent weeks other newspaper companies hitting bankruptcy court include the Minneapolis Star Tribune, the Philadelphia Inquirer, and the Journal Register Co.

 

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