Chicago Sun-Times Publisher Files for Bankruptcy

Authored by Mark Hefflinger on March 31, 2009 - 8:15am.

Chicago - Sun-Times Media Group, the publisher of the Chicago Sun-Times and 58 other newspapers and websites serving the Chicago area, announced on Tuesday that it has filed for Ch. 11 bankruptcy protections.

The company said it will continue to operate its newspapers and websites as usual during the process.

"Over the past several months, the Company has taken several steps to reduce costs and strengthen our organization. However, the significant downturn in the print advertising environment that has affected newspapers across the country has continued to severely impact us," said Jeremy L. Halbreich, chairman and interim CEO of Sun-Times Media Group.

"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. Importantly, we firmly believe that filing for Chapter 11 protection and exploring the potential sale of assets or new investment in the Company offers us the best opportunity to protect our respected media properties for the long-term."