The second major paper to file bankruptcy is Minneapolis Star Tribune which made the filing to “reduce our operating costs, restructure our debt and create a financially viable business for the future” according to a report over at E&P. The filing was also a promise made good by the paper after failed negotiations between the paper and its union members to trim another $20 million from the balance sheet.
According to E&P, the Star Tribune was purchased in 2007 for $530 million from the McClatchy Co. which practically dumped the paper after having paid $1.2 billion for it in 1998. The paper, in its filing, listed assets of $493.2 million with liabilities of $661.1 million.
The first paper to file bankruptcy was the Tribune Co. which owns the Chicago Tribune, L.A. Times, The Baltimore Sun, The Hartford Courant and many others.
Sheesh … And we’re only in January.
Just a small note that bankruptcy doesn’t mean going out of business and closing up shop…it’s protection from creditors and a chance to reassess and restructure that debt
Companies sometime emerge stronger from bankruptcy, so this is neither here nor there.
C’mon — emerge stronger from bankruptcy? A NEWSPAPER? There’s just no way they can survive in a world where everyone can get news for free. If I worked for a newspaper I’d be running for the doors.
To restructure a debt means one thing, slashing jobs and usually the first to go is the art dept. Meaning the Editorial/Political cartoonist(s). The only secure jobs are in the sports dept. Wait and see, wait and see.
This situation in Minneapolis was unavoidable. Now they can start fresh at the Strib and move forward.
On the other hand, Singleton’s newspapers are sinking fast and MediaNews will eventually fail and fall hard, like the blood-sucking monster it is. Little Deanie will get his just deserts, but the innocent will get hurt in the process. Hopefully, the Pioneer-Press will survive under new, post-Singleton ownership.