Bauer Media Group has announced this morning it is closing its New Zealand business due to the economic impact of coronavirus.
The group publishes titles such as Woman's Day, New Zealand Woman's Weekly, NZ Listener, Metro and many others including a digital network.
Bauer has 237 staff in New Zeland and all have been affected. Employees were advised this morning of the closure and that the business is no longer viable, bringing to an end decades of publishing in New Zealand.
Magazine publishing in New Zealand is currently suspended as part of the Government’s decision to move to the Covid-19 level four restrictions.
CEO Brendon Hill said it is a "devastating blow".
“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. Publishing in New Zealand is very dependent on advertising revenue and it is highly unlikely that demand will ever return to pre-crisis levels," said Mr Hill.
“This is a devastating blow for our committed and talented team who have worked tirelessly to inform and entertain New Zealanders, through some of the country’s best-loved and most-read magazines.”
Bauer has told staff funding will be provided to enable everyone to be paid their full redundancy and leave entitlements.
One Bauer staff member has told 1 NEWS the closure came out of the blue.
“It didn’t help that the Ministry of Culture and Heritage deemed the magazine industry as non-essential," the worker said.
“We were working regardless, reaching a great many New Zealanders that are often overlooked by other media.
“There’s the vacuum that will now exist losing in-depth analysis and thought-provoking articles of New Zealand Listener and Metro, and North and South.
“We are desperately sad iconic publications that are in many ways the guardians of New Zealand history and culture are gone just like that."
EY has been appointed to work alongside Bauer New Zealand to facilitate the closure.
“An active search is underway to find buyers for our New Zealand assets, including our many iconic titles, however, so far an alternative owner has not been found," said Mr Hill.
The decision to close the business is effective as of today.
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