One of the key drivers behind this restructuring is the looming risk of losing access to banking facilities. Picture: iStock
Independent Newspapers is set to undergo a major restructuring across several of its business units in a bid to address ongoing challenges in the business and media landscape.
Known for some of the country’s oldest English-language newspaper titles, the company said it had completed a “thorough evaluation” and concluded that further restructuring is “critical to its long-term sustainability.”
“Print media has come under severe pressure in recent years, a trend seen across the industry,” the company said in a statement.
“The unsustainability of print, coupled with the dramatic decline in advertising and circulation revenue, is forcing many media houses to rethink their traditional models.”
The decision followed a similar move by Media24, another major player in South African media, which recently shut down four of its print titles, citing similar challenges.
With consumers increasingly opting for digital platforms, print publications are struggling to keep up with shifting media consumption habits, Independent Newspapers noted.
One of the key drivers behind this restructuring is the looming risk of losing access to banking facilities.
Independent Media’s executive chairman Iqbal Survé has had several of his bank accounts closed and financial institutions refusing to provide services to him and his businesses, amid an investigation into alleged corruption at the Public Investment Corporation (PIC). Survé and his Sekunjalo Group have denied the allegations and challenged both the claims and the actions of the banks.
However, the company’s reliance on advertising and circulation revenue, combined with its lack of banking support, has placed it in a financially vulnerable position. The company, which operates largely on a cash-based model, stressed the importance of restructuring to safeguard its future amid these banking risks.
“The restructuring is therefore essential to securing the company’s future and mitigating these banking risks,” the company said.
Beyond banking concerns, the company pointed to rising operational costs, particularly for paper and printing, which now account for 60% of its expenses. Changing audience preferences toward digital platforms further emphasise the need for change.
Iqbal Survé, echoed these concerns, explaining that the cost of sustaining print titles has become unsustainable for Independent Media, Sekunjalo, and the Survé family, who have provided financial backing to the company over the past few years.
“Print media has been an iconic pillar of our company for decades, but the current business model is no longer sustainable in a world where digital platforms offer far greater reach and engagement opportunities,” he said.
Survé added that while the company would make every effort to reduce the impact of restructuring, not all employees would be able to transition to roles in the company’s growing digital division.
“We will assist with transitions wherever possible,” he assured.
Independent Newspapers emphasised that the restructuring process would be conducted transparently and fairly, in compliance with the Labour Relations Act.
The company said it would consult with stakeholders and explore all options to avoid retrenchments, while also providing support to employees impacted by the changes.
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