The Tribune, owners of LA Times and Chicago Tribune, filed for Chapter 11 ("reorganization") bankruptcy (which allows the firm to remain in business, as opposed to a Chapter 7 or "liquidation" bankruptcy) having struggled with $13bn of debt it took on when going private last year. The go-private deal was led by Sam Zell, a real-estate billionaire. The Tribune was first published in 1847. A primer on bankruptcy basics in the US is detailed here.
Overall 2008 has been a tough year for media companies. Apart from the Tribune, Scotland's Herald, Sunday Herald and Glasgow Evening Times announced a merger of their editorial teams, and the Independent is moving in with the Daily Mail to save money on rent. One spark amidst the gloom, reports City AM, is the niche publisher Future, whose 2008 pre-tax profits were up 27% to £9.5m. Reports CityAm "Futures magazines are ...managing to pull in advertising because they focus on the niche. If a consumer is buying an Xbox or mountain biking magazine, the chances are they're going to buy some of the gear that's advertised inside". "We are producing content for absolute enthusiasts" said CEO Stevie Smith.
The UK's insurance sector, it has been reported, is doing well despite the credit crisis. Insurance (excluding brokers and auxiliary professionals) represents 1% of UK GDP employing 325,000 people. Figures from Swiss Re indicate the UK is the largest insurance centre after the US, with Japan coming in third place just above France.
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