The company said it would continue to operate its newspapers and online sites while it focuses on further improving its cost structure and stabilizing operations. The company has retained Rothschild to commence a process for the sale of asset, the company said. The bankruptcy petition was filed in Delaware.
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While the Sun-Times has taken several steps to reduce costs, “the significant downturn in the print advertising environment that has affected newspapers across the country has continued to severely impact us,” the chairman, Jeremy L. Halbreich, said. “Unfortunately, this deteriorating economic climate, coupled with a significant, pending I.R.S. tax liability dating back to previous management, has led us to today’s difficult action.”
