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This just in… Tribune files for bankruptcy protection

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* 12:48 pm - The Tribune quotes the AP in a story about itself…

Media conglomerate Tribune Co. has filed for bankrutpcy protection, pressured by high debts, according to the Associated Press.

Background is here.

…Adding… Crain’s reports that the Cubs are excluded from the bankruptcy filing [h/t to commenters]

posted by Rich Miller
Monday, Dec 8, 08 @ 12:49 pm

Comments

Probably not as big a deal as it would seem — except for the employees, whose retirement plans may be wiped out. A Bankruptcy Court’s approval certainly adds an interesting layer to the Cubs’ sale, though. Look for Madison Dearborn Partners to re-emerge.

Who would have guessed the Tribune would declare bankruptcy before the Sun Times?

Comment by Anon Monday, Dec 8, 08 @ 12:56 pm
Strange times we live in. I don’t know what the future holds for the print properties, but WGN TV and Radio are still worth a boatload of money now and for the immediate future.

Comment by wordslinger Monday, Dec 8, 08 @ 12:57 pm
===Who would have guessed the Tribune would declare bankruptcy before the Sun Times?===

Yeah, but the CS-T’s problems are worse.

Comment by Rich Miller Monday, Dec 8, 08 @ 12:58 pm
The first domino…..or at least the biggest so far…

Comment by Vote Quimby! Monday, Dec 8, 08 @ 1:02 pm
A lot of people are blaming Sam Zell, but in fact it is the dinosaurs that live in the ivory tower that are to blame! Especially those on the Tribune Editorial Board. They may have broadcast and online outlets, but they still live in the dark ages.

Comment by Illinois.Pundit Monday, Dec 8, 08 @ 1:06 pm
Anon’s comment is very right on.Who would have guessed 8 years ago that the Chicago Tribune would have been in more trouble than the Sun-Times? Anyway,the best part of the Tribune properties are the Cubs,and the non-paper assets.Why hasn’t anyone suggested that the newspapers should be the ones sold?

Comment by Steve Monday, Dec 8, 08 @ 1:08 pm
Hey all you die hard cub fans out there. I bet you could buy your beloved Wrigley field, and maybe even the Cubs, now if you pool all the money you can dig out of your couches….

Comment by 618er Monday, Dec 8, 08 @ 1:09 pm
618er Maybe Mr. Cub can finally afford to buy the Cubs! Maybe Sam Zell will now have to sell for 10 cents on the dollar! Does this bankruptcy have anything to do with Ron Santo not being admitted into the Hall of Fame again? Even you Sox fans can’t knock him, he played for you for one year too!

Comment by Illinois.Pundit Monday, Dec 8, 08 @ 1:14 pm
I wonder if Zell will move to reneg the buyout agreements for the employees downsized last week. Promised a year’s salary? Hah, get a week instead.

And IL Pundit, the reason people (including me) are blaming Zell is because he’s the one who soaked the company and loaded it with debt in order to make a one-time dividend. Hopefully with the credit crisis this type of corporate raiding is eliminated for a while.

Comment by South Side Mike Monday, Dec 8, 08 @ 1:16 pm
Wow - I thought for certain the Obama endorsement was the turning point for the Chicago Tribune?!?

Hopefully, a corporate reorganization will help the Chicago Tribune minimize its debt and keep its employees. While often at odds with the paper, I respect its storied past.

Comment by Black Ivy Monday, Dec 8, 08 @ 1:20 pm
You wonder if the media will want a piece of the Washington,DC bailout money.
Strange the Cubs are not included in the Tribune’s properties. The company”s only real asset.
The old timers properly thought “hell” would freeze over before the paper endorsed a Democrat for President. They would never thought the paper would go broke.
One wonders if newspaper like we know them in print will be here in 5 to 10 years?

Comment by downstate reader Monday, Dec 8, 08 @ 1:37 pm
I think Zell is doing such a great job that he is a lock to be our next Governor. How is it that a so-called financial genius like Zell didn’t figure out that all that debt has to be repaid someday?? Gives him a lot in common with Blago.

Comment by DuPage Dave Monday, Dec 8, 08 @ 1:38 pm
===How is it that a so-called financial genius like Zell didn’t figure out that all that debt has to be repaid someday?? ===

He knew it would have to be repaid. The trouble was he didn’t figure on such a gigantic economic meltdown, which has endangered the Cub sale and further eroded advertising in newspapers and TV. He also may have believed that the governor could put together a deal to have the state buy Cub Park. Oops.

It’s a classic case of getting in over one’s own head.

Comment by Rich Miller Monday, Dec 8, 08 @ 1:41 pm
Downstate: I saw the Cubs aren’t part of the package too, and I don’t really know how they can accomplish that….other than paying lawyers gazillions of dollars…

Comment by Vote Quimby! Monday, Dec 8, 08 @ 1:42 pm
The Cubs aren’t in it because they declared bankruptcy about a hundred years ago.

Comment by A Citizen Monday, Dec 8, 08 @ 1:47 pm
Seriously though I think the Cubs appear on the Liability not Asset side of the Balance Sheet.

Comment by A Citizen Monday, Dec 8, 08 @ 2:07 pm
good riddins

Comment by tinman Monday, Dec 8, 08 @ 2:38 pm
Is riddins an animal, vegetable or mineral?

And why is it good?

Comment by Rich Miller Monday, Dec 8, 08 @ 2:39 pm
Will Carlos Zambrano have to stand at the corner of Wacker and Michigan Avenue on his non-pitching days hawking newspapers now?

Comment by trafficmatt Monday, Dec 8, 08 @ 2:56 pm
This is the a loud a clear tolling of the bell of change. A victim of technology for the most part, accelerated by the financial mess upon us. Many small papers have already failed and many are certain to follow. We move on and hopefully what we are moving toward is better than what we had. My kind wishes for those many dedicated employees who have lost their jobs.

Comment by Justice Monday, Dec 8, 08 @ 2:59 pm
Trafficmatt, that may be a lot of days until we find out what is wrong with Z. Plus, he could just begin in October since none of the Cubs bothered to show up.

Comment by Wumpus Monday, Dec 8, 08 @ 3:46 pm
I can’t help but chuckle at the misspelling of “bankruptcy” in both the headline and the text.

Comment by Frost Monday, Dec 8, 08 @ 3:50 pm
lol. Good eye. At first I thought you meant my headline.

Comment by Rich Miller Monday, Dec 8, 08 @ 3:51 pm
:)!

Comment by Frost Monday, Dec 8, 08 @ 3:56 pm
I say good riddance. After paying a buck for a Saturday Trib two weekends ago, a lot of the inside pages were blurry and unreadable. The sooner we kick the habit of killing trees to amuse/entertain ourselves the better. What a wasteful industry! The only time my intertubes get blurry is when I’ve been staring at it for 3 or 4 hours, now if we can only figure out how to make a profit off of it…

Comment by Vote Quimby! Monday, Dec 8, 08 @ 3:57 pm
Seeing this news over the weekend. It gave me chills down the spine. I can’t believe the Tribune is in need of bankruptcy protection.

Comment by Levois Monday, Dec 8, 08 @ 3:58 pm
The new Trib is awful. Do you know on Thanksgiving Day, they charged $2 because of the ads?

Comment by wordslinger Monday, Dec 8, 08 @ 3:59 pm
word: Same thing for me. I bought a Post-Dispatch for $1.50 for the ads on Thanksgiving Day. I was ticked off…charging more for ads! That’s the ticket out of this mess!

Comment by Vote Quimby! Monday, Dec 8, 08 @ 4:04 pm
Like I said before will we have a real printed newspaper in 5 to 10 years that we can hold and read .
It will probably only found on computers or Ipods.

Comment by downstate reader Monday, Dec 8, 08 @ 4:10 pm
The writing was on the wall, yet they refused to report it.

It is a new day.

Comment by VanillaMan Monday, Dec 8, 08 @ 4:45 pm
Remember, it’s not just the Trib. There are 9 other “newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team” (from the TribCo website). And guess what? The other papers’ websites are the same unusable format as the Trib’s–too many columns, shock headline at the top (”Coyote Removed from Sears!”), unwieldy ads, etc. No innovation, no attempts at trying to make themselves relevant again.

And the Trib’s new layout is nauseating. I think the Daily News tried something similar in the 1970s right before it stopped publishing. New Fonts! New Design! Same absence of in-depth reporting beyond the front page!

You really don’t have to wonder for long why some major companies fail. Automakers manufacture the same car under 3 nameplates, and the Tribune maintains 10 websites that are basically the same. That doesn’t sound very profitable to me.

Comment by Lefty Lefty Monday, Dec 8, 08 @ 4:51 pm
Mayor Daley ran the Chicago newspapers for years, what did you expect!

Comment by Deep Water Monday, Dec 8, 08 @ 5:07 pm
AA would buy WGN just to knock the Flubs off the air for good.

Comment by Arthur Andersen Monday, Dec 8, 08 @ 5:13 pm
Maybe,Sam Zell could ask Obama’s team for a bailout since the Tribune was promoting Obama with the T-shirt promotion during the campaign.

Comment by Steve Monday, Dec 8, 08 @ 5:51 pm
AA might also lob in a bid for the Flubs to get control of that prime real estate. Move ‘em to one of Mayor Daley’s Olympic venues and then tear down that firetrap Cub Park.

Wrigley Square Townhouses has a nice ring to it, dontcha think?

Comment by Arthur Andersen Monday, Dec 8, 08 @ 10:03 pm