Can we really be living in the last days of newspapers? Is the internet really going to do it for us?
The Minneapolis Star Tribune filed a Chapter 11 bankruptcy petition Thursday night.
The filing had been anticipated for several months. It follows missed payments to the paper’s lenders, and comes less than two years after a private equity group, Avista Capital Partners, purchased the paper for $530 million.
In its filing, the newspaper listed assets of $493.2 million and liabilities of $661.1 million. The company said it hopes to use bankruptcy to restructure its debt and lower its labor costs.
Like most newspapers, the Star Tribune has experienced a sharp decline in print advertising. Its earnings before interest, taxes and debt payments was about $26 million in 2008, down from about $59 million in 2007 and about $115 million in 2004.
1. Wow. That's some drop.
2. Earnings was?
How sad. I sure hope they pull out of this. They and all the other newspapers that are struggling so hard to survive.