Details on Star Tribune bankruptcy

Categories: Media is dead
Strib graphic.jpg

Shortly after the Star Tribune declared Ch. 11 bankruptcy last night, journalists in the Twin Cities started to dissect what this means for Minnesota's largest newspaper. Read the original note on the Star Tribune's Web site here

Check out all of the details below.

Check out the complete filing here. For full details on the last year of the paper, read the Pioneer Press recap

When the paper filed, the Newspaper Guild has no warning of the big news, the Pioneer Press says.
Graydon Royce, co-chairman of the newspaper's unit of the guild, said he learned of the filing when another Star Tribune employee called him about 8:15 p.m. 
"The Newspaper Guild was given no heads up at all," Royce said. "We have to get a lawyer and financial expert to represent us in any proceedings that happen. Beyond that, we just don't know what's going to transpire."
Employees aren't happy and blame the paper's owner, Avista Capital Partners, for their collapse. Check out David Brauer's report on MinnPost with their response.

The newsroom union put out a release showing support for the paper's future and survival.
Leaders of the Newspaper Guild, which represents nearly 300 newsroom journalists, said they are committed to the Star Tribune's survival as a vital source of news and as a Twin Cities civic institution. 
"We take seriously the future of this newspaper and our continued role in covering the events that define Minnesota," said Graydon Royce, who is co‑chair of the Star Tribune unit of the Newspaper Guild. "Some of us have lived here for decades, we've raised our families here and we understand the significance of keeping alive an institution that has served the community for 142 years." 
Guild leaders said they recognize the critical moment all newspapers face in 2009. Since Avista purchased the newspaper in 2007, the union has lost about 100 jobs, or nearly 25 percent of the news staff. That includes 23 journalists who took buyouts this month. 
The Guild represents reporters, editors, photographers, graphic artists, videographers, support, circulation and promotional staff.
"It's unfortunate that a New York‑based private equity company has put the Twin Cities largest source of news and information at risk," said Royce, a 29‑year veteran and one of the newspaper's fine arts writers. 
Last summer, the union agreed to a three‑year contract that saved Avista $2.4 million through pay freezes, buyouts and contract changes. In addition, the Guild accepted a new health plan that represented significant savings for the company. 
In recent negotiations, Guild bargainers offered to extend a 16‑month pay freeze for the entire three‑year contract and suggested unpaid furloughs and reduced pension contributions as ways of reducing the Star Tribune's operating costs. 
The Star Tribune publishes Minnesota's largest newspaper and website. Cowles Media owned the business for 60 years before selling it to McClatchy in 1998 for $.1.4 billion. The Sacramento‑based chain in turn sold to Avista two years ago to raise cash.
Will you still get your paper? Yes. What's next? MinnPost has a FAQ section about the bankruptcy.


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