Law360, New York (June 27, 2008) -- The economic slump that began in the housing sector continues to spread to other sectors of the U.S. economy. Several national retailers, including Sharper Image, Lillian Vernon, and Linens 'n Things recently filed for protection under Chapter 11 of the Bankruptcy Code. A number of airlines are in bankruptcy, and others may soon seek to reorganize or liquidate as well. Next in line might be the news publishing industry, and it could be headed for one of the most difficult periods in its history.
The trend in the newspaper industry for more than a decade has been declining circulation and consolidation. Seeking economies of scale and other synergies, many newspaper consortiums bought out smaller...
