Air America to File for Bankruptcy Amid Ad Decline

(Bloomberg) — Air America Media, the radio station with liberal-leaning programming, said it ceased operations and will file for bankruptcy after a drop in advertising sales.

The liberal station stopped live programming today and will soon file for Chapter 7 bankruptcy, the company said in a statement posted on its Web site.

Air America began programming in 2004 as a liberal alternative to conservative talk radio. The company couldn’t overcome the industry drop in advertising revenue, which declined in the past 10 quarters and 21 percent in 2009, according to the statement. The company filed for protection from creditors in 2006, before being sold to New York-based investor Stephen L. Green for $4.25 million.

“National and local advertising revenues have fallen drastically, causing many media companies nationwide to fold or seek bankruptcy protection,” Air America said in the statement.

The station featured shows by Rachel Maddow and comedian Al Franken, now a U.S. senator from Minnesota.

Radio station owner Citadel Broadcasting Corp. also filed for bankruptcy protection last month.

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