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Mnpls Star Tribune Files For Bankruptcy

Sad tidings from the Minneapolis Star Tribune:

Star Tribune files for Chapter 11 bankruptcy

By DAVID PHELPS, Star Tribune

January 15, 2009

The Star Tribune, saddled with high debt and a sharp decline in print advertising, filed a Chapter 11 bankruptcy petition Thursday night.

Minnesota’s largest newspaper will try to use bankruptcy to restructure its debt and lower its labor costs.

Chris Harte, the paper’s publisher, said the filing would have no impact on home delivery, advertising, newsgathering or any other aspects of the paper’s operations.

"We intend to use the Chapter 11 process to make this great Twin Cities institution stronger, leaner and more efficient so that it is well positioned to benefit when economic conditions begin to improve," Harte said in a statement

In its filing, the newspaper listed assets of $493.2 million and liabilities of $661.1 million

Total annual revenue at the Star Tribune peaked in 2000 at $400 million; by 2007 it was less than $300 million.

Over the past two years, Star Tribune management made several efforts to cut costs, mainly by reducing the workforce and renegotiating new cost-cutting contracts with its unions, which represent nearly two-thirds of the company’s 1,405 full-time employee positions…

In July, the Newspaper Guild, the union representing newsroom workers, agreed to a three-year contract that saved an estimated $2.5 million a year. But other unions refused to agree to new contracts.

In early December, however, Harte asked the unions for another $20 million in cost reductions and said he intended to impose $10 million in additional savings elsewhere in the company. Those negotiations resulted in no new agreements, however

Funny how these newspapers never wonder if their overwhelming media bias isn’t a factor.

How many businesses can survive by alienating half of their potential customers?

Not to mention how they thereby discredit everything else they publish.

But isn’t this a funny thing to say:

"We intend to use the Chapter 11 process to make this great Twin Cities institution stronger, leaner and more efficient so that it is well positioned to benefit when economic conditions begin to improve," Harte said in a statement.

Why wouldn’t that approach for the auto industry?

Oh, that’s right.

That trillion dollar bailout was to thank the auto unions for their ballot stuffing for Mr. Obama and the rest of the Democrats.

This article was posted by Steve on Friday, January 16th, 2009. Comments are currently closed.

8 Responses to “Mnpls Star Tribune Files For Bankruptcy”

  1. heykev says:

    I expect the bailout money will be heading their way any day now as repayment for their help in stealing the election in MN

  2. Liberals Demise says:

    I predict forced subscription is on the way for our “LOONS” of the north.
    Take this paper or Al Franken will knock up your pet.

  3. Zeusshiloh says:

    I think that this is the first of several newspapers that will be going this route. It is not only a sign of the times as more and more are getting their news from the Internet (can’t trust the MSM and their newspapers) but also more and more people are realizing that these newspapers are anything but objective.

    It is a shame the same process wasn’t used for the auto industry, but it was/is bail out for the Unions and their support for “THE ONE.” Wonder what will happen in the future, when the car companies are still in the same financial situation? Or do they expect that Congress will force us to buy their cars? This is, provided that our economy doesn’t go totally south and we explode into hyperinflation.

  4. 1sttofight says:

    David McCumber, Managing Editor of the paper wrote an infamous editorial in response to this article in which the P-I refused to publish photos of a pair of men who the FBI suspected might be possible terrorists.

    According to McCumber, in his editorial:

    ” I understand that people have a hard time with the concept that we get to decide what is news and what isn’t, and what is fair and what isn’t.

    Well, it looks like McCumber is not the only decider in town.

  5. 12 Gauge Rage says:

    The MSM bemoans the failure of several major newspapers and blames it all on the internet. But I think the biggest reason for the drop in newspaper circulation is that now there is another voice in the media. A conservative one that is found on conservative websites such as this one. For years we we’ve had to deal with a very smug, liberal media bias from the papers because there really was no alternative voice. Isn’t it great to finally see them put in their place by the very same technology they embraced as a means of further spreading their ideology? But don’t count them down and out just yet. With the possibility of them reviving the Fairness Doctrine, they’ll try to find a way to regulate and limit the amount of free conservative speech on the internet. For it all boils down to the power they want over our lives.

  6. Dangerous says:

    There’s one thing I’ve never quite understood when unions act this way. Their choices were:
    1 – help a failing business stay afloat by sacrificing either pay for their members or some of their members’ jobs.
    2 – do nothing to help said business and lose all pay and jobs associated with it.
    Why in the world would they choose the 2nd?

    With that little moment out of the way, here’s hoping this becomes a trend. I’ve heard that liberals can become conservatives when confronted with real life, so it could be a very good thing for the world if more of them run into consequences that their own actions create.

  7. Odie44 says:

    It’s the dialogue and content.

    Funny, that newspaper (WSJ) Rupert bought was supposed to be a huge “failure” due to his glaring conservative tilt… yet is only 1 of 2 national newspapers to either be flat (in revenue, profit margin) or grow in 2008.

    Liberals cannot be trusted with anything that needs to make money.
    Whether a freebee or someone else’s money.

  8. proreason says:

    Imagine how much better the country would be if all the newspapers went bankrupt

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