Sticks of Fire: a Tampa blog

Eric Deggans has found that Creative Loafing has filed for bankruptcy.  According to the original story in CL’s Washington City Paper, CEO Ben Eason is just thrilled with the development:

“The term ‘bankruptcy’ conjures up all kinds of images and demons but it is essentially a legal proceeding designed to give an over-leveraged company the time, process and a safe harbor for which to reorganize its finances. Chapter 11 was the natural place for the Company to go to accomplish an orderly reorganization of our finances.”

“the step would allow the six papers in the Creative Loafing portfolio to establish a greater online presence”

“This is all about a fresh start,” stated Eason, who hastened to add that the filing entails no liquidation, no layoffs, and “no terrible, terrible things.”

No - nothing terrible at all - I mean, if the word “bankruptcy” is basically just another word for “peachy.”

Deggans asked if the deal to purchase the Washington City Paper and Chicago Reader pushed the company into this corner.  Oh, no, of course not, says Eason.

“… the Reader and Washington City Paper and Creative Loafing are all far better off today [than before the acquisition]“

But the Publisher of the Chicago Reader just resigned 2 weeks ago, and a couple comments on that article suggest that CL didn’t know exactly what they were getting.  (Remember that many online comments are full of sh.. conjecture and gossip, but can provide some additional perception.)

We’re waiting to hear more from CEO Ben Eason, and media follower Wayne Garcia.

Update 315pm:  Wayne Garcia confirms the news, but has no additional comment.

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