Creative Loafing, Reader's parent company, files Chapter 11

Washington City Paper.com wrote:Creative Loafing Inc., the owner of Washington City Paper, announced this morning that it has filed for Chapter 11 bankruptcy. In a conference call with top company officials, Ben Eason, the company’s CEO, said that the step would allow the six papers in the Creative Loafing portfolio to establish a greater online presence while the company reorganizes its operations.

Washington City Paper.com wrote:Creative Loafing owns papers in Atlanta, Tampa, Charlotte, Sarasota, Chicago, and Washington. It acquired the last two in July 2007. The company, however, disavows a causal link between those acquisitions and the bankruptcy filing.

“This filing has little to do with the acquisition and everyone should feel very proud of what we’ve accomplished,” reads the company memo. “It hasn’t been easy but it has been successful. The assumptions we made have not turned out to be so successful. The print business has been under siege from all quarters with the exception of the one place that counts; audience.”

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