Star-Tribune declares bankruptcy
The far left Star-Tribune of Minneapolis, the 15th largest newspaper in the country by circulation, declared bankruptcy yesterday. It's been intellectually bankrupt for ages now, so this comes as no surprise.
Thomas Lifson adds:
Barely 10 years ago, McClatchey paid $1.2 billion for the Strib. Just 2 years ago, they cut their losses and sold it to the buyout geniuses at Avista Capital Partners for 58% less: $530 million. Thanks to the huge debts taken on to buy the paper, as well as the decline in nespaper industry fortunes, the equity value now must be in the neighborhood of zero.
2009 promises to be the year of newspaper bankruptcy. What other papers will follow? The New York Times is denying that it will go bankrupt this May.
"It's unfortunate that a New York-based private equity company has put the Twin Cities largest source of news and information at risk," Graydon Royce, co-chairman of the Newspaper Guild said in the statement. The guild represents almost 300 employees of the paper, mostly in its newsroom.