Minneapolis Newspaper Files for Bankruptcy

Star Tribune , overwhelmed by debt, plans to keep operating under reorganization
By Harry Kimball,  Newser Staff
Posted Jan 16, 2009 2:44 PM CST
The headquarters of the Star Tribune in Minneapolis.   (AP Photo)
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(Newser) – The Minneapolis Star Tribune has filed for bankruptcy protection after missing payments to creditors, the paper reports. Like most other 3-D news outlets, the 15th-largest daily in the country has seen a steep decline in advertising revenue. The Chapter 11 filing shows assets of $493.2 million and debt of $661.1 million. The Strib plans to keep operating as it reorganizes its debt.

Highlighting the usefulness of a two-newspaper town, the archrival Pioneer Press of St. Paul reports that the Star Tribune had sought $20 million in wage concessions from its workers, but talks with the unions broke down a week ago. "The Newspaper Guild was given no heads up at all," said the co-chair of the local representing newsroom employees.