Tribune Newspapers To Close Dec. 31

The Tribune Newspapers, which publish editions in Mesa, Gilbert, Chandler and Queen Creek, will cease operations on Dec. 31, the parent company Freedom Communications announced Monday.

Freedom officials announced the closure to employees Monday morning, citing economic reasons, industry pressures and the inability to find a suitable buyer for the chain of newspapers. The four newspapers distribute 100,000 free newspapers to homes, businesses and racks three times a week.

The East Valley Tribune is the second newspaper in Arizona to be shuttered this year. The Gannett-owned Tucson Citizen closed in May, after publishing for 138 years.

In a statement announcing the closure, Irvine, Calif. -based Freedom said that it had been working with a broker to seek a new partner who might be better positioned to guide these Phoenix-area properties in the future.

“Unfortunately, we have yet to identify a suitable partner to purchase the East Valley Tribune. As a result, we have made the difficult but necessary decision to wind down these operations,” said Burl Osborne, Freedom's chief executive.

Throughout this transition, Freedom Arizona will publish its print and online products as usual, continuing to support its customers, advertisers and its community. Employees and suppliers will be paid for the work they perform and goods they provide during this transition period.

Osborne said for the past year, Freedom Arizona has taken a number of steps to make the East Valley Tribune a stronger and more competitive paper in its market, however the economic and industry pressures have not provided the backdrop we needed to optimize its success.

“Because of its impact on our employees and the communities we serve, this is probably the most difficult decision a company can make," he said. "But ultimately, after considering all available options, this is the best alternative for our company financially given the continued recession and many challenges facing our industry.”

Severance packages will be provided to employees and some jobs may be available in other parts of the company, Publisher Julie Moreno told The East Valley Tribune in a report posted on its website (http://www.eastvalleytribune.com).

The Freedom-owned Sun City News and the Ahwatukee Foothills News, will continue to publish as will Freedom Interactive in Chandler, which publishes the Clipper coupon book. About 140 employees work at the Tribune, the newspaper reported.

As the company announced the closure of several Arizona properties, it also filed its proposed reorganization plan with the U.S. Bankruptcy Court in Wilmington, Del.

“The filing ... represents an important milestone in our Chapter 11 case," Osborne said. "We are especially pleased that we were able to reach this key step in our restructuring process in just two months. It brings us closer to successfully completing our debt restructuring and positioning the company for future opportunities and challenges that lie ahead in the rapidly changing media industry.”

Freedom, which owns the Orange County Register, the third-largest daily in California, and 30 other newspapers, filed for bankruptcy on Sept. 1 after reaching an agreement with a majority of lenders of its roughly $1 billion debt to restructure the company.

Under the plan, lenders holding $770.6 million of the company's debt will end up with 98 percent of the equity of the restructured company, cutting the debt to $325 million as a result. The plan has to be approved by the court at a confirmation hearing before the company can exit bankruptcy protection.