The Wall Street Journal reports that the Tribune Company, a major newspaper publisher, broadcaster, and owner of the Chicago Cubs, is preparing for a possible bankruptcy filing.
At the time a group led by Sam Zell, legendary Chicago real state developer, was implementing their leveraged buyout, the handwriting was already on the wall for the newspaper business. This is one deal that just didn't work out.
In recent days, as Tribune continued talks with lenders to restructure its debt, the newspaper-and-television concern hired Lazard Ltd. as its financial adviser, as well as legal counsel for a possible trip through bankruptcy court, according to people familiar with the matter.
Some of the company's properties are no doubt still quite viable. But more journalists are likely to lose their jobs.
Hat tip: Ed Lasky