The U.S. Sun-Times Media Group Inc., which filed for bankruptcy protection this week, may stop daily publication of some of its suburban newspapers as part of a push to return to profitability, the company's CEO Jeremy Halbreich said Friday.
In an interview with Chicago Business, he said "I am hard-pressed to think of any other place with suburban dailies, it's something we need to think about."
Daily publications around the country have cut frequency or stopped publishing altogether as ad revenue has plummeted faster than expected amid the deepening recession, he said.
Sun-Times is making other cost-cutting moves, including slashing compensation costs, which last year ran to about 100 million U.S. dollars, by 15 percent through layoffs, pay cuts, benefit reductions and furloughs. "In this environment we need to ensure that we are minimizing the cash drain and turning it into a situation of cash equilibrium as quickly as possible," said Halbreich, who took over as the company's CEO in February after disgruntled shareholders ousted most of the board of directors.
Sun-Times Media Group Inc., which also owns dozens of suburban newspapers, filed for Chapter 11 protection in a Delaware court on Tuesday to become the fifth U.S. newspaper publisher to seek protection from creditors in recent months.
Source:Xinhua
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