The company, which cited a "very difficult economic environment," will file under Chapter 7 of the Bankruptcy Code, according to a statement on its Web site.
Air America launched in April of 2004, and Sen. Al Franken and Rachel Maddow (pictured) have been among its hosts.
"At a critical time in our nation's history — when dissent on issues such as the Iraq war were often denounced as 'un-American' — Air America and its talented team helped millions of Americans remember the importance of compelling discussion about the most pivotal events and decisions of our generation," the company said in its statement.
Air America filed for Chapter 11 bankruptcy protection back in 2006, according to the Washington Post, and was sold for $4.25 million three years ago.
The company's employees have been let go, and it will run "encore programming" through Monday. Read Air America's full statement here.