On Monday, Tribune Co. filed Chapter 11 bankruptcy, giving the nearly insolvent newspaper and television station owner time to find buyers for some of its troubled properties. Tribune Co. which owns 10 daily newspapers, 23 TV stations and has 20,000 employees has been financially devastated by a crushing $13 billion debt and reduced advertising revenue. Many of their top employees, fearing job losses have already fled the debt troubled company. But those who were laid off and still depend on Tribune Co. financially are in for a rude awakening.
With the Chapter 11 bankruptcy, Tribune Co. has already stopped severance payments, deferred compensation and other payments to former employees. These former employees will have to file a claim with the Chapter 11 bankruptcy court to receive payment. Tribune Co. is also expecting more job losses in the near future as they struggle to stay afloat.
This is another example of how bankrupt companies can have a domino effect throughout the economy. Tribune Co. is huge; with 20,000 workers everyone will feel the effects of this bankruptcy. Their former employees who now have no income will most likely need to consider bankruptcy themselves. If you're working for a company that has filed bankruptcy, you need to consider all of your options including personal bankruptcy before you get your pink slip. You may not lose your job; but you need to be prepared just in case.