Chicago Reader Parent Files for Bankruptcy
Creative Loafing Inc., which owns the Chicago Reader and five other alternative weeklies, filed for Chapter 11 bankruptcy Monday in Tampa, Florida, where the company’s headquartered. CEO Ben Eason didn’t want to put a number on Creative Loafing’s total debt, but it grew considerably last year when the company bought the Reader and the Washington City Paper, and today it “owes more than it can pay back.”
In a telephone conversation with executives of his newspapers, Eason sounded relentlessly chipper, and he emphasized that all his company seeks from bankruptcy is the opportunity to restructure its debts. Liquidation is not being considered. “This is a profitable business,” he declared. “The company has a good cash flow. It has a good market position. Online revenues more than doubled in the last year.” But print revenues have fallen off dramatically over the past year at Creative Loafing and throughout the newspaper ... Read More...
