The New York Sun, a newspaper founded as an alternative to the New York Times, was shut down on Tuesday for its failure to raise enough capital.
Founder Seth Lipsky was reported saying that a search for new financial supporters had failed, although the initial backers were willing to pay extra if partners could be found. Trying to raise capital had been extremely difficult for them, and it led to bankruptcy in the midst of the credit crisis in the United States. However, even against competitors such as the New York Times and the Wall Street Journal, the Sun increased its advertising sales by 25 per cent this year.
According to the New York Times, Lipsky said, “Among other problems that we faced was the fact that this month, not to mention this week, has been one of the worst in a century in which to be trying to raise capital, and in the end we were out not only of money but time.”
The economic crisis in America has been a setback for the newspaper as it was on a time lapse as well. The company also needed more capital from shareholders as costs were rising, advertising revenue falling considerably, and the paper still continuing to run at a loss. Although this was a sad state of affairs, Lipsky believed the decision to shut down the newspaper was not rash, but rather “a logical decision.” All alternatives had been thoroughly investigated and explored before publication was ceased.
Since the first issue published on April 16, 2002, the New York Sun was published five days a week, and had around 113,300 copies distributed in Manhattan, and around 2 million guests on the Internet every month. Although it was a brilliant beginning for the paper, the Sun failed to raise enough capital to keep the paper running, and apparently required “tens of millions” of dollars to be able to cover up the losses, even with the willingness of those funding the newspaper to pay extra. Although this was a rather disappointing end for the newspaper and its readers, Lipsky promised his team that the company would not be filing for protection against bankruptcy, but would shut down in somewhat “an orderly way.”
The working conditions of the offices the 110 staff worked at are said to be in a bad condition -- problematic computers and telephones, fire-alarms that rang for no reason, stalling elevators, bad bathroom plumbing, and no air conditioners. In spite of all this, nothing stopped them from achieving a lot and influencing their readers; they will be greatly missed. Even the New York mayor was a daily reader, and was quoted to have said, “In a city saturated with news coverage and commentary, the Sun shone brightly, though too briefly.”
The newspaper was founded in 2002 by Seth Lipsky, former Wall Street Journal reporter. The New York Sun began smoothly with $15.9 million that Lipsky managed to raise through a number of supporters. The last edition of the Sun was published was on September 30.
