The end of newspapers

By Lou Grant | Jul 09, 6:47 PM

Back from vacation and the number one question on the minds of my relatives was why is the Tribune Co. losing money?

Wow! Where to start with that one? The question came from a retired executive, formerly a Sr. VP at a Fortune 100 company. My reply was to the point. The Tribune Co. isn't losing money. It simply isn't making enough money to service its debt as called for in its loan agreements. If Tribune fails, it won't be due to losing money, it will be due to the banks saying its financial ratio is wrong.

Oh! My brother-in-law replied. That WILL get ya'.

Yep!

It is now about six months since the Sun-Times Media Group put itself up for sale, in whole or in part. From what I can tell, no one has even bid on owning the candy machine in the helpers room.

Time is ticking by at the STMG, time and cash is disappearing. Why won't anyone buy a used newspaper anymore? Oh, understand me when I say that it is not just the Sun-Times parent, there are other newspaper companies for sale, particularly Landmark, but it sold the Weather Channel and will probably survive.

STMG? It set a goal of saving $50 million a year. That was inadequate. Two years of cash are left and then it's done. Hard and fast cuts need to be made now or there won't be a tomorrow.

The Tribune Co. announced further major reductions in staff, including a substantial number of editorial positions, to be completed by Labor Day. When it is all done, will the newspaper that survives still be something Col. McCormick would be proud of? Will it still do any in-depth news? Or will it, as one reader told me today, be used to line a bird cage?

Which leads to this question, of the writers likely to survive this round of cuts at the Chicago Tribune, which one's face should show for the bird droppings?

Tagged: Chicago Sun-Times, Chicago Tribune, Tribune Company