Posted on December 8, 2008 at 2:14 PM
Filed under: Corporate Strategy | Divesting and Restructuring | Trends
Tagged: bankruptcy , McClatchy Co. , Miami Herald , New York Times , Tribune Co.

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The ailing newspaper industry isn't getting a bailout from Uncle Sam as it's squeezed by weakening demand and lost ad sales to rival Web properties.

Word just came in that debt-ridden newspaper and television company Tribune Co. filed for bankruptcy Monday. Most of Chicago-based Tribune's debt came from a buyout by real estate magnate Sam Zell last year.

Also on Monday, the New York Times Co. said on its Web site that it plans to borrow up to $225 million against its mid-Manhattan headquarters to ease a potential cash-flow squeeze as the company grapples with tighter credit and shrinking profits.

And on Saturday, NYT reported that McClatchy Co., burdened by debt and a steep slide in newspaper advertising, wants to sell The Miami Herald, the nation's third-largest newspaper chain.

Perhaps the newspaper folks need to get a contingency together to lobby in Washington. - Baz Hiralal


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