Bauer Media stands down staff and suspends print of Australian titles

Bauer Media stands down staff and suspends print of Australian titles

Approximately 70 staff at Bauer Media will be stood down as the publisher temporarily suspends the publication of a number of titles due to the COVID-19 financial crisis.

The publisher says the impact of COVID-19 in Australia and the correlated decrease in advertising revenue leaves Bauer Media with no other choice.

Titles affected will maintain a digital presence and print publication will resume once the trading environment improves.

"These are unprecedented times," Bauer Media Australia CEO Brendon Hill said in a meeting with staff today.

"The COVID-19 crisis and the strict measures being taken to control it are having a profound impact on the Australian economy and any business that operates in it.

"This has led to a sharp decrease in advertising revenues in Australia over the short term and we have had to reshape our organisation accordingly."

Bauer Media's announcement comes just days before the group is due to settle the delayed $40 million acquisition of Seven West Media-owned (ASX: SWM) magazine publisher Pacific Magazines.

The decision also follows the German-based media company's announcement earlier in April that it has discontinued its publishing business in New Zealand.

Bauer Media NZ published entertainment, lifestyle and current affairs titles including the NZ Listener, Woman's Day, New Zealand Woman's Weekly, North and South and Next, along with a digital network.

EY was appointed to work with Bauer New Zealand to facilitate an orderly wind-down of the business.

The collapse of the New Zealand business was a casualty of the NZ Government's decision to move into Level 4 COVID-19 restrictions, resulting in magazine publishing being suspended.

"We understand the New Zealand Government's decision to move to COVID-19 Level 4, but it has put our business in an untenable position," said Hill.

"Publishing in New Zealand is very dependent on advertising revenue and it is highly unlikely that demand will ever return to pre-crisis levels."

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Advertisement

Related Stories

Brisbane biotech to trial world-first COVID-19 immunotherapy treatment

Brisbane biotech to trial world-first COVID-19 immunotherapy treatment

Brisbane and Seattle-based biotechnology company Implicit Bioscie...

Federal Court finds Google misled consumers on data collection

Federal Court finds Google misled consumers on data collection

The Federal Court has found Google misled consumers about persona...

Redflow charging up ahead of next-gen battery launch

Redflow charging up ahead of next-gen battery launch

Redflow (ASX: RFX) is gearing up to launch the next generation of...

Mayne Pharma breakthrough as FDA approves new contraceptive with plant-based estrogen

Mayne Pharma breakthrough as FDA approves new contraceptive with plant-based estrogen

A bet made by Mayne Pharma (ASX: MYX) in 2019 has paid off today ...