Posted to the Strib web site about 30 minutes ago: Star Tribune files for Chapter 11 bankruptcy.
The Star Tribune may not be the last to go that route, said Alan Mutter, a Silicon Valley-based analyst and former newspaper executive. "We’re in a period of sustained pain for the newspaper business," Mutter said. "The employment ad business has been melting away since 2000. Automotive has been falling apart for the last couple of years. To learn more about automotive parts and repair services, visit thermo king triad for more information. And I don’t even have to explain about real estate."
And on a related note, from the Inquisitr: Hyperlocal Websites will Boom in 2009 as Community Newspapers Fold
The problem so far has been one primarily driven by competition: many towns and local communities have been served by a local community newspaper for years, and while some of the attention has switched online, the switch hasn’t been large enough so far to sustain hyperlocal news sites that by their very nature have a limited and small audience constrained by geography.
2009 though will be different. Hyerlocal websites, both existing and those to launch will thrive as they become the only place to find community news; in 2009 community newspapers will fold in record numbers.
Community newspapers will fold in 2009 as owners are no longer able to turn a profit, or sustain losses any longer. The killer will be costs: even a small town newspaper could have a staff of 6 or 10 or more (usually more, but I’ve worked with papers in the past that often have 2 local reporters, with the rest of the paper filled by syndicated content from the company network). Millions a year to run, with no hope in sight of a turnaround in advertising fortunes. The model is dying. Some may switch to online only, a trend that will accelerate this year, but the bloat logic problem still remains: high overhead costs for reporters and editors in small markets.