Strib Again Bleeds Red

The Star Tribune lost another $451,000 last month after just squeaking by into profitability in May, bringing the amount of money it’s lost since entering bankruptcy Jan 15 to $5.1 million.

MinnPost’s David Brauer reports that compensation and benefit costs for its 1,600 workers are to blame for the Strib’s loss; when new contracts renegotiated under bankruptcy kick in, the $8.5 million it paid out last month is expected to shrink.

In May, the Star Tribune Guild, which represents editorial, circulation, and promotion/creative employees, agreed to a 3 percent wage cut, a pension freeze, a furlough, and more cuts and concessions.

The Strib is expected to emerge from bankruptcy this fall—possibly as soon as September.