According to Moneyweb, the Board of Directors of Caxton & CTP Publishers & Printers Limited (CAT) announced today that they have started the process of withdrawing from magazine publishing and other associated businesses.
The news is another blow to the media industry which has seen Associated Media close its doors at the start of May. Caxton said that they decided “in principle” to close its magazine division,
a difficult but unavoidable decision in the interest of the group as a whole.
Here is the list of the magazine titles affected:
• Country Life
• Food & Home
• Garden & Home
• Rooi Rose
• Woman & Home
• Your Family
The board stated that “the steady and continuous reduction in the overall amount of ad spend being allocated by advertisers to the magazine media sector as well as the decline in circulation revenues has, over a number of years, significantly reduced the viability of the magazines business. Further the negative impact of the recent Covid-19 lockdown on general economic activity and, as a consequence, on the ability of the business to trade normally in what were already difficult trading conditions for magazine publishers had made this decision unavoidable.
The high level of cancellations of advertising in the period leading up and over the lockdown period has already had a major impact on trading aggravated by the concern that this revenue will be permanently lost and will place serious extra pressure on the magazine business as a whole. As such, the significantly reduced levels of revenue exacerbated by potential long-term impacts of the Covid-19 combined with reducing circulation numbers are insufficient to sustain the business in the short and long term.”
According to Moneyweb, Caxton is consulting with its employees and is “keen to engage with any other parties and publishers who would be interested in taking over any of its titles”.
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