Third newspaper company in debt squeeze

The Star-Tribune disputes a New York Post story that it’s about to go bankrupt but I wouldn’t say this sounds positively optimistic (my emphasis):

“The Star Tribune currently has sufficient liquidity and is current on all its debt payment obligations,” Harte said in a statement issued Sunday afternoon. Pressed further, he said the newspaper would not miss a debt payment this year unless things worsened.

Bets, anyone? Add this to Tribune Company having to sell Newsday to raise cash to handle its debt and Journal Register facing a debt crunch. The slope is getting slipperier and steeper.

  • http://www.iconnectdots.com Steve Borsch

    As a lifelong reader of Minneapolis papers, let me tell you the current Strib is the thinnest version I’ve ever plucked out of my paper box in memory.

    My wager? If they’re making their debt payment obligations now…wait until the summer doldrums hit and I’ll bet receivership comes by August at the latest.

    Jeff, you’ve so eloquently (and with an insiders perspective) written about what you think it’ll take to keep news organizations in-the-game. Mine is a strong, local and full embrace of user-generated content that still is led by people in each community in which the paper covers and THEN those community leaders widen the circle of others. Wrote about that here: http://www.iconnectdots.com/ctd/2008/02/why-newspapers.html

    Keep up the good work!

  • http://donmcarthur.com Don McArthur

    Not to go all grammar-Nazi, but ‘slipperier’? Clumsy like Jerry Ford descending airliner stairs.

  • http://www.politicsforumpoliticalworld.com/ political forum

    It seems that the decline of printed newspapers is a recurring theme when it comes to the future of the news. Eventually it may come to news agencies, or the AP coming together to charge fees for the use of their stories on the internet. I can see no other way for them to get paid for their reporting.

    -Ted