“The steady and continuous reduction in the overall amount of adspend 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 magazine business,” the board stated.
“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 has made this decision unavoidable.”
All the group’s clients have experienced a “significant downscaling of activities” due to the Covid-19 lockdown.
“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 and the group as a whole.
“As such, the significantly reduced levels of revenue exacerbated by the 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.”
As such the group decided “in principle” to close its magazine division – a difficult, but unavoidable decision in the interest of the group as a whole, says the company.
Caxton is consulting with its employees.
The titles affected are: Bona, Country Life, Essentials, Food & Home, Garden & Home, People, Rooi Rose, Vrouekeur, Woman & Home and Your Family.
Caxton is “keen to engage with any other parties and publishers who would be interested in taking over any of its titles.”
Interested parties were advised to contact Anton Botes at email@example.com
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DISCLAIMER: The Citizen is also owned by Caxton & CTP Publishers & Printers Limited