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