2d Chicago paper files for bankruptcy
NEW YORK - Sun-Times Media Group Inc. yesterday became the second major Chicago newspaper publisher to seek bankruptcy protection as a plunge in advertising revenue drains available cash.
It follows Chicago Tribune owner Tribune Co. and three other newspaper companies that have filed for bankruptcy since December. Publishers are halting print editions, firing staff, and selling assets to cope with plummeting revenue as more readers get their news from the Web, where ad sales are less lucrative. US newspapers lost 17 percent of their ad revenue last year, according to the Newspaper Association of America.
"With the decline in classified and auto and retail advertising, it's probable we'll see more bankruptcies this year," said Ken Doctor, an analyst with Outsell Inc. in Burlingame, Calif.
Sun-Times Media, owner of the namesake publication, will continue to run its newspapers and online sites while focusing on improving cost structure and operations, the publisher said.