PALO ALTO, Calif. -- The Peninsula Times Tribune closed down Friday after its parent, Tribune Newspaper Co., failed to find a buyer for the afternoon daily.
The newspaper, which had a circulation of about 40,000, had warned its roughly 300 employees a month ago that a shutdown was possible.
Publisher Robert E. Wood said Tribune Newspaper had received more than 90 inquiries after putting the paper on the block last November -- but only two emerged as qualified buyers willing to assume the daily's obligations.
'The last bidder withdrew this week after discussions with the Times Tribune unions,' Wood said. 'Given the outlook, we have concluded there is no alternative but to permanently cease newspaper operations.'
Tribune created the Peninsula Times Tribune about a decade ago by merging two papers, the Palo Alto Times and Redwood City Tribune, that it bought from Peninsula Newspapers Inc.
At the start, the Times Tribune had a circulation of about 65,000, but that fell due to competition from the nearby San Francisco Chronicle, San Jose Mercury News and San Mateo Times.
The Times Tribune's failure comes in the midst of a severe shakeout in the newspaper industry, with dailies in San Antonio; Dallas; Little Rock, Ark.; Anchorage, Alaska; Pittsburgh and other cities folding in recent months.
Also Friday, Tribune Newspaper closed the Peninsula Community Newspapers, a chain of nine weekly newspapers delivered free to about 200,000 households.
Tribune Newspaper, a Chicago-based media conglomerate, owns the Chicago Tribune and other properties.