# Is Creative Loafing Inc. seeking bankruptcy protection? **URL:** \ **Category:** About This Message Board\ **Created:** [July 29, 2009, 5:12am UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640 "2009-07-29T05:12:08Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Khampelf](https://avatars.discourse-cdn.com/v4/letter/k/8e7dd6/32.png) [@Khampelf](https://boards.straightdope.com/u/Khampelf)\ **Post date:** [July 29, 2009, 5:12am UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/1 "2009-07-29T05:12:08Z")
I’ve heard a rumor to that effect. Is there any truth to it? Will it have any effect on the board? Inquiring minds want to know. ---
**Author:** ![DSYoungEsq](https://avatars.discourse-cdn.com/v4/letter/d/c6cbf5/32.png) [@DSYoungEsq](https://boards.straightdope.com/u/DSYoungEsq)\ **Post date:** [July 29, 2009, 5:31am UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/2 "2009-07-29T05:31:18Z")
[Creative Loafing at Wikipedia](http://en.wikipedia.org/wiki/Creative_Loafing). Yes, the owners of this Board are in bankruptcy procedings. No one is quite certain what it will do to the Board. ---
**Author:** ![DudleyGarrett](https://avatars.discourse-cdn.com/v4/letter/d/d9b06d/32.png) [@DudleyGarrett](https://boards.straightdope.com/u/DudleyGarrett)\ **Post date:** [July 29, 2009, 11:42am UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/3 "2009-07-29T11:42:57Z")
> [@DSYoungEsq](#): > > [Creative Loafing at Wikipedia](http://en.wikipedia.org/wiki/Creative_Loafing). > > Yes, the owners of this Board are in bankruptcy procedings. > > No one is quite certain what it will do to the Board. The board’s going away. Bet on it. ---
**Author:** ![Kal](https://avatars.discourse-cdn.com/v4/letter/k/9de053/32.png) [@Kal](https://boards.straightdope.com/u/Kal)\ **Post date:** [July 29, 2009, 11:50am UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/4 "2009-07-29T11:50:54Z")
Latest news is that that there was a court hearing on the 27th to set the rules for an equity auction taking place in August. Can’t see that a ruling has been issued yet. It’s not all doom and gloom, though. CL management has found a sure-fire way to boost the company’s online profile by [hiring bloggers off Craigslist.](http://blogs.tampabay.com/media/2009/07/why-is-creative-loafing-using-craigslist-to-recruit-lowpaid-bloggers-from-the-community.html) ---
**Author:** ![Kal](https://avatars.discourse-cdn.com/v4/letter/k/9de053/32.png) [@Kal](https://boards.straightdope.com/u/Kal)\ **Post date:** [July 29, 2009, 6:05pm UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/5 "2009-07-29T18:05:16Z")
> [@Kal](#): > > Latest news is that that there was a court hearing on the 27th to set the rules for an equity auction taking place in August. Can’t see that a ruling has been issued yet. Correction: The hearing got pushed back to today. Updates should be posted [here](http://blogs.creativeloafing.com/politicalwhore/) after the hearing. ---
**Author:** ![leander](https://avatars.discourse-cdn.com/v4/letter/l/bcef8e/32.png) [@leander](https://boards.straightdope.com/u/leander)\ **Post date:** [July 29, 2009, 8:53pm UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/6 "2009-07-29T20:53:42Z")
Well, there’s [good news and bad news](http://www.tampabay.com/news/business/corporate/article1022973.ece). The bad news: > [@](#): > > Creative Loafing, the weekly alternative newspaper chain based in Tampa, fears a bankruptcy auction of its stock next month could break up the company. > > \ > > Eason fears the deep-pocketed Atalaya could blow away other bidders, including Eason himself, and begin liquidating the company for cash as early as September. The good news: > [@](#): > > Emerging from court Wednesday, Eason appeared more confident than he had been in previous interviews. > > “We’re going to win,” he said. ---
**Author:** ![Kal](https://avatars.discourse-cdn.com/v4/letter/k/9de053/32.png) [@Kal](https://boards.straightdope.com/u/Kal)\ **Post date:** [July 29, 2009, 9:04pm UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/7 "2009-07-29T21:04:07Z")
The funny news: > [@](#): > > … Eason, as the CEO of the debtor Creative Loafing, had one set of lawyers in court today who had negotiated and filed the bidding rules and sought Judge Delano’s approval. He also had another lawyer in court representing him and family members who would be part of the new equity bid, and that lawyer — for Eason (the bidder) — took issue with the bidding rules that Eason (the debtor) had OK’ed… ---
**Author:** ![Yllaria](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/yllaria/32/3452_2.png) [@Yllaria](https://boards.straightdope.com/u/Yllaria)\ **Post date:** [July 29, 2009, 9:33pm UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/8 "2009-07-29T21:33:08Z")
So if they auction us off, can we buy us? ---
**Author:** ![leander](https://avatars.discourse-cdn.com/v4/letter/l/bcef8e/32.png) [@leander](https://boards.straightdope.com/u/leander)\ **Post date:** [July 29, 2009, 9:36pm UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/9 "2009-07-29T21:36:49Z")
> [@Yllaria](#): > > So if they auction us off, can we buy us? In theory, yes. But I’m guessing that the SD will be parceled in with The Reader, so you’d have to buy the lot. Now if you have some spare cash and want to run an unprofitable newspaper, it’s yours to bid for! ETA: - [cite](http://www.tampabay.com/features/media/article1022827.ece) > [@](#): > > Now both will likely face off again during the auction, where Atalaya has already presented a “stalking horse” bid of $2 million. And, depending on the framework decided by the judge, **any interested company could join the bidding**. ---
**Author:** ![DudleyGarrett](https://avatars.discourse-cdn.com/v4/letter/d/d9b06d/32.png) [@DudleyGarrett](https://boards.straightdope.com/u/DudleyGarrett)\ **Post date:** [July 29, 2009, 11:10pm UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/10 "2009-07-29T23:10:35Z")
> [@leander](#): > > In theory, yes. But I’m guessing that the SD will be parceled in with The Reader, so you’d have to buy the lot. > > Now if you have some spare cash and want to run an unprofitable newspaper, it’s yours to bid for! > > ETA: - [cite](http://www.tampabay.com/features/media/article1022827.ece) I’ll buy the whole thing for $175. ---
**Author:** ![leander](https://avatars.discourse-cdn.com/v4/letter/l/bcef8e/32.png) [@leander](https://boards.straightdope.com/u/leander)\ **Post date:** [July 29, 2009, 11:30pm UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/11 "2009-07-29T23:30:20Z")
The sad thing is, the company borrowed $30m a few years ago and now it looks like it will be bought for a tenth of that. ---
**Author:** ![Jonathan\_Chance](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jonathan_chance/32/701_2.png) [@Jonathan\_Chance](https://boards.straightdope.com/u/Jonathan_Chance)\ **Post date:** [July 29, 2009, 11:37pm UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/12 "2009-07-29T23:37:53Z")
And that’s exactly WHY they went into bankruptcy. They overleveraged in what appears (to my eye) to be a foolish way. I’d love to buy them, actually. I think I could turn it around and I’d love to own a media outlet in Chicago. It’s my home town. ---
**Author:** ![leander](https://avatars.discourse-cdn.com/v4/letter/l/bcef8e/32.png) [@leander](https://boards.straightdope.com/u/leander)\ **Post date:** [July 29, 2009, 11:50pm UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/13 "2009-07-29T23:50:16Z")
> [@Jonathan\_Chance](#): > > And that’s exactly WHY they went into bankruptcy. They overleveraged in what appears (to my eye) to be a foolish way. I agree it was a very foolish thing to do. My understanding is that they went into bankruptcy because the lender demanded they pay back some or all of the money. (The nerve of those damn lenders.) Frankly I think Eason will probably keep control of the company – he’ll win the “I am newspaper man, they’re just money men” argument about who is best to run it. Yes, it seems odd considering the bang up job he’s done but oh well. The worst thing is that when company’s neglect or default on their responsibilities it makes it that much harder for others to legitimately seek funding. > [@](#): > > I’d love to buy them, actually. I think I could turn it around and I’d love to own a media outlet in Chicago. It’s my home town. If you can raise a couple million, you’re in! 😛 ---
**Author:** ![leander](https://avatars.discourse-cdn.com/v4/letter/l/bcef8e/32.png) [@leander](https://boards.straightdope.com/u/leander)\ **Post date:** [July 29, 2009, 11:52pm UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/14 "2009-07-29T23:52:09Z")
All that being said, I hope that at the end of this whole damn court mess whoever emerges will do some cool and interesting things with the SD. ---
**Author:** ![ambushed](https://avatars.discourse-cdn.com/v4/letter/a/3bc359/32.png) [@ambushed](https://boards.straightdope.com/u/ambushed)\ **Post date:** [July 30, 2009, 7:00am UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/15 "2009-07-30T07:00:55Z")
> [@leander](#): > > All that being said, I hope that at the end of this whole damn court mess whoever emerges will do some cool and interesting things with the SD. We can hope, I guess. _I’d_ start by trying to lure back the mods who departed after Ed’s farcical new Pit-dogma clusterfuck and encouraging a few who remained here to find lodgings elsewhere… ---
**Author:** ![Scruff](https://avatars.discourse-cdn.com/v4/letter/s/6f9a4e/32.png) [@Scruff](https://boards.straightdope.com/u/Scruff)\ **Post date:** [July 30, 2009, 7:09am UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/16 "2009-07-30T07:09:34Z")
Serious question: What is the business attraction for the SDMB? Traffic to the site for ads? Name maintenance for when/if we ever see another Cecil book? Hell, I like this board, and (most of) the people on it. And I for one welcome our new cash-bearing overlords. But what do we offer in return? Is that worth the cost of a server or two, and people to run it as a business venture? ---
**Author:** ![leander](https://avatars.discourse-cdn.com/v4/letter/l/bcef8e/32.png) [@leander](https://boards.straightdope.com/u/leander)\ **Post date:** [July 30, 2009, 7:57am UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/17 "2009-07-30T07:57:46Z")
> [@ambushed](#): > > We can hope, I guess. _I’d_ start by trying to lure back the mods who departed after Ed’s farcical new Pit-dogma clusterfuck and encouraging a few who remained here to find lodgings elsewhere… There are so many ways they could increase traffic and revenue here. I am really hoping that once these proceedings are done \*someone \*will step in and start managing this place properly. ---
**Author:** ![ambushed](https://avatars.discourse-cdn.com/v4/letter/a/3bc359/32.png) [@ambushed](https://boards.straightdope.com/u/ambushed)\ **Post date:** [July 30, 2009, 8:39am UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/18 "2009-07-30T08:39:32Z")
> [@leander](#): > > There are so many ways they could increase traffic and revenue here. I am really hoping that once these proceedings are done \*someone \*will step in and start managing this place properly. I certainly can’t and won’t argue with any of that! ---
**Author:** ![Kal](https://avatars.discourse-cdn.com/v4/letter/k/9de053/32.png) [@Kal](https://boards.straightdope.com/u/Kal)\ **Post date:** [July 30, 2009, 10:22am UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/19 "2009-07-30T10:22:11Z")
> [@leander](#): > > The sad thing is, the company borrowed $30m a few years ago and now it looks like it will be bought for a tenth of that. Looks like that $30 million was just what they borrowed from Atalaya and they borrowed another $10 million from BIA Digital Partners. The current state of play, far as I see it: BIA and Eason are teaming up to attempt to gain control via the auction, with Eason saying that a) it just ain’t fair that Atalaya will be able to bid more than him and, b) that if Atalaya gain control they’ll just shut CL down to pay back what’s owed 'em. Atalaya (who, it should be noted, have lowered the debt owed to them to $12 million), say that the company’s financial woes are down to bad management and that if they win the auction they’ll continue to run CL as a business and inject another $1 million for operating costs. As to what all this means to the SDMB; not a clue. Compared to the core business, this place is very small fry. As is, under Eason, CL’s newspapers have become little more than pamphlets now and they’ve got shot of a cubic shedload of good newspaper folk, replacing them with unpaid bloggers as he seemingly attempts to reposition the various 'papers as new versions of [Gawker.com](http://Gawker.com). I don’t think that’s gonna work out well and I don’t see that Eason will devote much - if any - attention to the SDMB while he attempts to stop the company from circling the drain. Maybe new management could improve things. ---
**Author:** ![Jonathan\_Chance](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jonathan_chance/32/701_2.png) [@Jonathan\_Chance](https://boards.straightdope.com/u/Jonathan_Chance)\ **Post date:** [July 30, 2009, 3:35pm UTC](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640/20 "2009-07-30T15:35:05Z")
> [@leander](#): > > If you can raise a couple million, you’re in! 😛 That’s always the trick. I’d need a white knight at this point. [Next page](https://boards.straightdope.com/t/is-creative-loafing-inc-seeking-bankruptcy-protection/504640.md?page=2)