US-based Tribune files for bankruptcy but continues operating

More on this tomorrow, but just to link today’s (Monday) news that the Tribune Co. has filed for Chapter 11 bankruptcy protectionas reported here by the group’s own newspaper the LA Times, as well as numerous other news sources. The group also owns KTLA Channel 5, the Chicago Tribune, the Baltimore Sun as well as nine other newspapers and 22 other television and radio stations across the country. 

The group’s chief executive Sam Zell said in a statement (via CNNmoney.co.uk):

“Factors beyond our control have created a perfect storm – a precipitous decline in revenue and a tough economy coupled with a credit crisis that makes it extremely difficult to support our debt.” 

“We believe that this restructuring will bring the level of our debt in line with current economic realities, and will take pressure off our operations.” 

The groups says it is able to sustain operations while it restructures. Here, Editor & Publisher looks at concerns inside the newsroom.

Excerpts from Sam Zell’s memo can be read here.

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