The Future of Print

Sun-Times Media Group Files for Chapter 11

Posted in Doom by futureofprint on March 31, 2009

CHICAGO Sun-Times Media Group STMG, burning through cash at more than $5 million a month, filed for Chapter 11 bankruptcy protection Tuesday.

The parent of the Chicago Sun-Times and 59 Chicago-area newspapers said it would continue to operate its papers “as usual while it focuses on further improving its cost structure and stabilizing operations.”

STMG said it had retained Rothschild Inc. to “commence a process for a sale of assets.”

The company said it believed it had enough cash for day-to-day operations.

“Over the past several months, the company has taken several steps to reduce costs and strengthen our organization. However, the significant downturn in the print advertising environment that has affected newspapers across the country has continued to severely impact us,” Jeremy L. Halbreich, chairman and interim CEO, said in a statement. “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. Importantly, we firmly believe that filing for Chapter 11 protection and exploring the potential sale of assets or new investment in the Company offers us the best opportunity to protect our respected media properties for the long term.”

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: