Sun-Times Media Group Files For Bankruptcy

DON BABWIN

CHICAGO (AP) — The owner of the Chicago Sun-Times, a storied newspaper once home to legendary columnist Mike Royko and other greats, followed its hometown rival by filing for bankruptcy protection Tuesday — raising questions about whether both can survive in a brutal time for newspapers.

The filing was widely seen as a step toward shutting down a feisty paper known for uncovering city scandals that once went as far as to secretly operate a bar to expose crooked city inspectors.

"We'd be surprised if they are publishing a print daily newspaper by the end of 2010," said Mike Simonton, a bond analyst at Fitch Ratings. "They've been on the clock for over a year now in terms of burning cash and not having really a viable revenue and cost structure to survive in this environment."

Sun-Times Media Group Inc., which also owns dozens of suburban newspapers, filed for Chapter 11 protection in a Delaware court — the fifth newspaper publisher to seek protection from creditors in recent months.

The move comes in the bleakest of times for newspapers, especially in two-newspaper cities, as plummeting advertising revenues have forced closures and bankruptcies. In a matter of weeks, the Rocky Mountain News in Denver has closed its doors and the Seattle Post-Intelligencer has abandoned its print editions for online only.