SouthComm CEO Chris Ferrell is quoted on the paper's website as saying the final issue will come out Aug. 9.
Ferrell said the free newsweekly is popular with readers, but there is not enough advertiser support. He said the paper has been subsidized by investors and other SouthComm publications for years.
The company's other publications include the Washington City Paper and Creative Loafing in Atlanta, the Tampa Bay area and Charlotte, N.C.
In Nashville, SouthComm publishes the Nashville Scene, the Nashville Post and nFocus. Ferrell said some City Paper staff will move to other SouthComm publications.
The City Paper launched as a free Monday-Friday publication in November 2000. SouthComm purchased it in 2008. It later became a weekly.