The New York Times will file a required 60-day notice with federal authorities that it plans to shut the storied Boston Globe, newspaper officials said last night. Tense negotiations with unions failed to produce millions of dollars in savings Times representatives say are necessary to continue Globe operations. The Newspaper Guild called the announcement a "bullying" negotiating ploy, reports the Washington Post.
The Globe's circulation plunged 14% in the last six months and the paper is expected to lose $85 million this year. The Times is also staggered by fiscal problems, and had to mortgage its Manhattan building, borrow $240 million at a 14% interest rate from a Mexican investor, and cut staff and salaries.