New York Sun, the small-but-influential NY area newspaper which launched among much hype in 2002, may be forced to close after this month if it does not find new investors. According to NYP, the paper is losing money at the rate of $1 million a month for total losses surpassing $70 million. The paper was backed by deep-pocketed investors to being with, including Roger Hertog, the former vice chairman of AllianceBernstein, and became known for its coverage of New York City government and the arts and for its conservative political bent, reports WSJ. As of 2007 the paper claims a readership of 150K, supposedly among a slice of “New York elite”. A history of the paper, here on Wikipedia.
Update: The newspaper published a letter to the readers on this: “There has been some success as well on the business side, where a group of loyal advertisers has awakened to our readership…[but] the expense of producing and distributing the paper exceeds our revenues…Our losses, which are substantial, have been covered so far by a group of investors whom we would call heroic. In recent months, we have had discussions with a number of newspaper proprietors and other potential investors about possible combinations or investment relationships…There is no assurance that any of our discussions will be successful, but we are hopeful.”