Page last updated at 15:11 GMT, Tuesday, 31 March 2009 16:11 UK

Chicago paper threatens to fold

Guy holding papers
This sight may soon be a thing of the past in Chicago

The owner of the Chicago Sun-Times has filed for bankruptcy, the latest newspaper to fall victim to the slowdown in advertising revenues.

The announcement means that both of Chicago's daily papers are operating under protection from creditors.

The Chicago Tribune owner, the Tribune Company, filed for bankruptcy in December.

There is much talk of a crisis in the US newspaper industry as they they struggle to cope with the downturn,

'Preserve jobs'

The Sun-Times Media Group said its main creditor was the Internal Revenue Service, as it owes up to $608m in back taxes and penalties from past business practices by its former owner, former media tycoon Conrad Black.

Chairman Jeremy Halbreich said his goals were to sustain the company's print and online news operations while "preserving as many jobs as possible".

Its rival, the Tribune Company, also owns the Los Angeles Times and the Baltimore Sun.

The recession in the US has hit advertisers and newspapers hard, while growing readerships online have not generated the revenue to offset declining circulations.

The 146-year-old Seattle Post-Intelligencer this month became the first major US paper to stop a print edition and go online only, with an editorial team of 20 as compared to 150 previously.

Last month, the San Francisco Chronicle said the paper could be sold or closed down if it could not meet cost-cutting targets.

There has been a similar situation in the UK, with local newspapers being particularly affected.

The Daily Mail and General Trust (DMGT) is cutting 1,000 jobs at its regional arm, Northcliffe Media, and local newspaper group Archant, which owns the Eastern Daily Press and Evening News, said this month it was planning to cut 34 jobs in Norfolk.



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