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Written by Lassie
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Sunday, 04 May 2008 13:16 |
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The New York Post reports today that things are not looking good for the StarTribune.
May 4, 2008 -- The Minneapolis Star Tribune, reeling under a heavy debt load and plummeting advertising sales, is on the brink of bankruptcy, The Post has learned. One of the nation's top dailies, "The Strib," as it is known to readers in the Twin Cities, recently hired the Wall Street powerhouse Blackstone Group to restructure its balance sheet after failing to meet its debt obligations, according to people familiar with the company.
The broadsheet is unlikely to shutter its doors, but its creditors, including the banking giant Credit Suisse Group, figure to eventually end up controlling the paper. Down the road, the creditor group could then sell it after dramatically cutting costs. ...Last week, the paper reported that its weekday circulation dropped 6.74 percent, to 321,984, in the six-month period that ended March 31. Billionaire real-estate mogul Sam Zell, who bought the Tribune Co. last year, was recently forced to put Long Island's Newsday, one of its more valuable assets, up for sale in order to meet debt obligations.
Technology continues to trump dinosaur media it seems, as more turn to the 'net for news. Some outstate local papers are charging $1 per word for a letter to the editor to help increase income. Time will tell what the "Red" Star will do, especially if creditors like Credit Suisse Group take control.Cross-posted and comments welcome at FreedomDogs.
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