Local radio has struggled mightily in recent years as fans have moved to podcasts and streaming services.

Radio also took a major hit during the Covid pandemic, according to Michael Bergner from the Media Brokerage firm Bergner & Company.

“If radio was a $15 billion business before COVID, we may be back to $9 billion now. You’re not going back to $15 billion,” he told Radio Ink.

iHeartMedia Chairman Bob Pittman shared his take on the industry’s issues.

“Nielsen came out with a study of [radio ’s] return on investment [which shows] a 6-to-1 ROI [for every dollar invested in radio], which by most estimates is much greater than television or digital,” he told CNBC’s “Squawk on the Street.” “What’s happened in radio is that it has done a very poor job of monetizing what they have.”

Now, another radio giant, Cumulus Media, has filed for Chapter 11 bankruptcy protection.

Cumulus Media shares its Chapter 11 bankruptcy plan

Cumulus Media filed for Chapter 11 bankruptcy protection in the Southern Texas Bankruptcy court on March 5, according to documents filed on Pacer Monitor.

It’s a pre-packaged bankruptcy designed to eliminate the company’s debt.

“Cumulus Media Inc. has entered into a comprehensive restructuring support agreement with a group of its lenders to eliminate approximately $600 million of debt, substantially deleveraging its balance sheet and enhancing its ability to execute on strategic priorities. The Company will continue operating in the ordinary course throughout the process, with no impact to employees, partners, or listeners,” it shared in a press release.

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If that goes as planned, it would leave the company in a stronger position.

“Prepackaged bankruptcy, commonly referred to as a ‘pre-pack,’ is a streamlined approach under Chapter 11 of the Bankruptcy Code where the terms of reorganization are agreed upon by creditors and the debtor before the bankruptcy filing. This process minimizes the uncertainty, time, and costs typically associated with traditional Chapter 11 bankruptcy proceedings,” Accounting Terms Lexicon shared.

Some national advertising has moved to podcasts, websites, and streaming.

“The local ad market continues to be stronger than the national side of the spot ad business for broadcast stations, with major brands and ad agencies shifting budgets to streaming, mobile and social media platforms,” S&P Global Analyst Principal Research Analyst Justin Nielson wrote, according to Radio World.

Radio stations have been closing all around the country.

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Radio stations have struggled

There have been a number of Chapter 11 bankruptcy filings in the radio space.

• Audacy, Inc. filed for Chapter 11 bankruptcy protection on January 7, 2024, initiating a prepackaged restructuring support agreement with its lenders aimed at significantly deleveraging its balance sheet and reducing debt from $1.9 billion to $350 million while continuing operations in the ordinary course, according to Radio Insight.
• High Plains Radio Network LLC filed for Chapter 11 bankruptcy protection in March 2024, with financial challenges tied to tower site lease disputes and stalled buyer deals affecting its network of small‑market stations in Texas, Arkansas, and other states, according to Radio Ink.A planned sale of approximately 20 stations from High Plains to E Radio Network collapsed in late 2025, leading to many stations going silent while new buyers are sought under the ongoing bankruptcy process, added Radio Ink.
• JAM Media Solutions (2022–2023): After a Chapter 11 filing, this media/ownership group’s assets moved into Chapter 7 liquidation, affecting stations in Iowa and North Carolina, according to Radio Insight.

The National Association of Broadcasting (NAB) shared its concerns on these issues in a letter to the FCC back in 2021.

“Aside from losing nearly 200 radio stations in the past two years, growing numbers of stations are unprofitable and experiencing negative advertising growth, while at the same time are constrained by outdated ownership restrictions from responding to these competitive conditions,” NAB wrote.

ALSO READ:

• Troubled radio station company files for Chapter 15 bankruptcy
• 2nd largest radio operator files for bankruptcy protection

Key local radio bankruptcy takeaways

• Local radio revenue continues to decline due to streaming, podcasts, and changing listener habits.
• Major chains like Cumulus Media and Audacy have filed for Chapter 11 to restructure debt.
• Independent stations face financial pressure from declining ad revenue and rising operating costs.
• Prepackaged bankruptcy allows companies to reorganize efficiently while maintaining operations.

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