Tribune Company files for bankruptcy

Posted to The Newsroom by Andrew Denney at 1:52 p.m., Dec. 8, 2008

According to a report from The New York Times, the Tribune Company, which owns the Chicago Tribune and the Los Angeles Times, has filed for bankruptcy amid falling ad revenues and rising debts.

According to the report, it is as of yet unclear how this will affect the entire newspaper industry. Not included in the bankruptcy filing was the Chicago Cubs franchise, which the Tribune Company owns. According to a news release from the company, efforts will be put into place to monetize the franchise.

In the release, Tribune Company Sam Zell said, while the company has worked to  provide innovation in its product, falling revenues and economic woes has created a "perfect storm" in terms of its financial standing.

"We believe that this restructuring will bring the level of our debt in line with current economic realities, and will take pressure off our operations, so we can continue to work toward our vision of creating a sustainable, cutting-edge media company that is valued by our readers, viewers, and advertisers, and plays a vital role in the communities we serve," Zell said. "This restructuring focuses on our debt, not on our operations."

The release stated that, currently, the company has enough cash on hand to continue its operations.