The Sun-Times Media Group, parent of the Chicago Sun-Times, filed for bankruptcy protection on Tuesday, earning Chicago the distinction of being the first U.S. city served by two bankrupt newspaper publishers.
The Sun-Times also said it hired Rothschild Inc to try to sell some of its assets, which include 59 newspapers and their websites. The Sun-Times is one of the papers that it could sell, spokeswoman Tammy Chase said reports Reuters.
Interim Chief Executive Jeremy Halbreich told the Sun-Times that the company has received interest from several potential buyers. He was not immediately available for comment.
The Sun-Times filed for Chapter 11 bankruptcy protection at the U.S. Bankruptcy Court in Delaware.
It plans to operate its newspapers and websites while improving its cost structure and stabilizing operations. It said it has financial resources to continue daily operations.
“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,” Halbreich said.
The publisher joins its much larger, Chicago-based rival, Tribune Co, in a growing list of newspaper companies that are choosing bankruptcy as the best way to restructure as advertising revenue plummets.
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