Page last updated at 22:29 GMT, Monday, 26 October 2009

Investors save Chicago newspapers

Newspaper vending machine
Like other US newspapers, falls in advertising have made life tough

The company which owns the Chicago Sun-Times has been bought by a group led by a local businessman, seven months after it filed for bankruptcy.

The paper - the 15th largest in the US - had been the latest publication to fall victim to the slowdown in advertising revenues.

But businessman James Tyree said his team saw "tremendous opportunity and untapped potential".

The group paid $5m (£3.1m) for the firm and took on $21.5m of liabilities.

"Our intentions are to grow the company by seeking new revenue opportunities, to adapt and lead change in the rapidly transforming news industry, and to become profitable," Mr Tyree said.

Industry problem

As well as the Sun-Times, the company includes seven other suburban dailies and 51 weekly newspapers.

The takeover was approved by a US bankruptcy court earlier this month.

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

In March, the 146-year-old Seattle Post-Intelligencer 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.

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



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SEE ALSO
Chicago paper threatens to fold
31 Mar 09 |  Business
Seattle paper moves online only
16 Mar 09 |  Business

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