Hell for Zell: The Bankruptcy of Tribune Company
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Case Details:
Case Code : BSTR317
Case Length : 19 Pages
Period : 2000-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Tribune Company
Industry : Newspapers
Countries : USA
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Background
On June 10, 1847, James Kelly, John E. Wheeler, and Joseph K.C. Forrest published the first edition of the newspaper
'Chicago Daily Tribune.' In 1861, the newspaper was renamed as 'Chicago Tribune' and the Tribune Company was incorporated to run the newspaper...
The Troubles Begin
During the period 2000-05, the readership and ad revenues of newspapers began to decline. While readers started using the Internet to get access to news, advertisers increasingly began turning to online advertising...
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The Zell Era
Zell was a multi-billionaire who had made his money mostly from the real estate business. He described himself as
"the grave dancer"- someone who bought up distressed businesses or properties, to sell them later at a profit. He also had stakes in several companies around the world, with varied businesses like retail stores, wineries, barges, and compressors for the energy industry...
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Filing for Bankruptcy
In September 2008, one current and five former employees of Tribune filed a case against Tribune and Zell citing mismanagement of the company. The lawsuit asked for broader representation of employees and a new ESOP trustee. It also sought information about the value of pension assets, which were being continuously accessed to fund the severance payments of laid-off employees. The lawsuit further stated,
"Zell and his accessories threaten to destroy the Tribune Company and its assets. They are doing so illegally, without consideration for the employee-owners."... |
Excerpts
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