Troubled Tribune Co. Files for Bankruptcy
Zell: 'Perfect storm' crippled company.
RELATED: Zellâ€™s Memo
Nearly a year after real estate mogul Sam Zell took the Tribune Company private in a dramatic $8.2 billion buyout, the troubled companyâ€”which owns the Chicago Tribune, Los Angeles Times and Chicago Cubs baseball franchise, among other propertiesâ€”has filed for bankruptcy protection. (The Cubs franchise is not part of the filing, the company said.)
Zell said a â€śperfect stormâ€ť of economic factors led the Chicago-based company to file for bankruptcy.
â€śA precipitous decline in revenue and a tough economy have coupled with a credit crisis, making it extremely difficult to support our debt,â€ť Zell wrote in a memo to staffers. â€śAll of our major advertising categories have been dramatically impacted.â€ť
Tribune has assets of $7.6 billion and debts of $12.9 billion. Since going private, the company â€śhas re-paid approximately $1 billion of its senior credit facility,â€ť and has been â€śrewriting the business model for its media assets with the goal of building a sustainable, innovative, competitive company.â€ť
Click here to read Zellâ€™s memo.