The owner of the Chicago Sun-Times has filed Chapter 11:
Sun-Times Media, the parent company of The Chicago Sun-Times newspaper, said Tuesday that it had filed for Chapter 11 bankruptcy protection and hired an investment bank to explore possible asset sales.
The company said it would continue to operate its 59 newspapers and various Web sites as it goes through the bankruptcy process. The company has retained Rothschild, an investment bank, to commence a process for the sale of assets, the company said. The bankruptcy petition was filed in Delaware.
The Sun-Times is the second Chicago publishing company to seek bankruptcy protection. The newspaper’s crosstown rival, the Chicago Tribune Company, which publishes The Chicago Tribune and The Los Angeles Times, filed for court protection in December to reduce its crushing debt load.
The Sun-Times has a weekday circulation of 313,000 and a Sunday circulation of 256,000. The Tribune’s circulation was 516,000 daily and 865,000 for Sunday.
“Over the past several months, the company has taken several steps to reduce costs and strengthen our organization,” Jeremy L. Halbreich, Sun-Times Media Group’s chairman and interim chief executive, said in a news release announcing the bankruptcy filing. “However, the significant downturn in the print advertising environment that has affected newspapers across the country has continued to severely impact us.”
Given the fact that the problems they face have more to do with their business model than their financial structure, one wonders how these companies can expect to ever successfully emerge from Chapter 11.