A former magazine boss says she foresees Bauer Media closing several Pacific Magazine Titles following the formal closure of the deal last Friday.
Last Friday, Bauer Media and Seven West Media’s Pacific Magazines finally sealed the $40m deal after weeks of speculation the sale had fallen through amid the coronavirus crisis.
And now, ex-magazine titan Deborah Thomas says she expects some Pac Mag titles to go under the new ownership, she told The Australian.
The deal, which was struck in October last year, appeared to be on the rocks for a few months as Bauer struggled under the weight of the coronavirus pandemic which saw advertising revenue wiped out.
With Bauer quickly needing to cut costs, Thomas says she tips the saving measures to come from shutting down some Pacific Magazines titles, most likely those that are similar to mags in Bauer’s stable.
She told The Oz: “There would have to be titles in the Pacific portfolio that may be shut down in the same way that they’ve shut down the four at Bauer during this period where the advertising dollar is just not happening.”
Thomas, who is a former editor of Bauer’s The Australian Women’s Weekly, couldn’t say which titles may close, but that it might not be just a financial decision. She said it may also come down to contract details, especially when it comes to licensing deals with international owners of the titles.
It’s been a hard few months for Bauer and the wide magazine industry, which was already struggling before the coronavirus pandemic.
Just recently it was also revealed Bauer stopped the use of freelance journalists and suspended staff expense claims days before the final completion of the Pac Mags sale was due to go ahead.
The cost-cutting measures followed the decision to close Bauer’s New Zealand arm and reports it bought EY onboard to review the business locally.
And, last Wednesday it was revealed due to the impact of COVID-19 in Australia, and the correlated decrease in advertising revenue, Bauer is set to suspend the print publication of certain titles and to restructure parts of the business. The proposal means that 70 Bauer staff will be made redundant and a similar number stood down.
