Creative Loafing files for bankruptcy

The owner of Atlanta alternative weekly Creative Loafing filed for Chapter 11 bankruptcy early Monday.

Creative Loafing Inc., which owns several papers across the country, including Creative Loafing in Tampa and Washington City Paper in the nation’s capital, announced the move in a conference call with company officials.

Ken Edelstein, editor of Creative Loafing Atlanta, said there are no planned changes to staff at this time and the paper would conduct business as usual. Separately, the newspaper laid off two staffers in August, saying the moves were necessary because of declining advertising revenue and skyrocketing fuel and print costs.

Creative Loafing Atlanta has an editorial staff of about 17, Edelstein said, and a creative services group of perhaps 60 people from the company’s Tampa headquarters.

“It doesn’t change anything in our operations,” he said. “If anything it gives a sense of immediacy to growing our online presence.”

Creative Loafing Inc. CEO Ben Eason said the filing would help the chain improve its online business while the overall company reorganizes its operations.

But part of the filing may have stemmed from a dispute over payments from lenders Atalaya Funding and BIA Digital Partners, according to court documents also filed Monday. The limited liability company and limited partnership lent Creative Loafing Inc. $30 million to pay down $15 million in debt and to buy Washington City Paper and Chicago Reader, which Creative bought in 2007.