Creative Loafing Sold To Hedge Fund; No Layoffs Planned

Phew. Creative Loafing, the second-largest alt-weekly chain in the country, which has been in bankruptcy for almost a year, was sold at auction yesterday to hedge fund and creditor Atalaya Capital Management.

Outgoing CEO Ben Eason borrowed $30 million from Atalaya to purchase the Chicago Reader and Washington City Paper.

Atalaya will now take control of the company with its $5 million cash winning bid, but has announced there are no “planned layoffs” and no plans to close any of Creative Loafing’s papers.

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