Magazines come to abrupt end, publisher didn’t seek wage help
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Prime Minister Jacinda Ardern is ‘‘gutted’’ that magazine publisher Bauer is closing its doors after refusing the Government’s coronavirus wage subsidy.
‘‘I have to say I am extraordinarily disappointed and frankly gutted to see what has been a part of New Zealand history close its doors fairly abruptly today,’’ she said yesterday
Bauer Media Group confirmed it did not apply for a wage subsidy to keep it going through the Covid-19 disruption. It chose to close its New Zealand operations yesterday after many decades of publishing in the country.
In Australia, Bauer has just been given the go-ahead to buy rival Pacific Magazines for A$40 million (NZ$41 million), leaving Australia with just two major magazine groups – Bauer and News Life Media.
Ardern said Broadcasting, Communications and Digital Media Minister Kris Faafoi had asked the company to take up the subsidy, but it refused.
‘‘The Government actively sought to assist Bauer through this period of time.’’
She said it appeared to be a decision made at the same time of the coronavirus pandemic, but was not because of it.
The subsidy, if taken up by the company, could have and should have made a difference to the journalists, photographers, and designers it employed, she said.
Ardern explained the Government wanted the company to ‘‘keep their doors open, keep operating, keep an online offering and move through the other side of Covid-19 once we’re able to’’.
The Magazine Publishers Association (MPA) said it had worked closely with Bauer and other publishers on a submission about being classified as an ‘‘essential service’’.
‘‘We clearly asked for the non-essential ruling to be reversed. Bauer and the MPA had numerous phone calls with Government officials, who indicated their preference for dealing with industry bodies,’’ the MPA said.
‘‘The MPA submission pointed out the anomaly of magazines being singled out as the only product banned from supermarkets, and the impact on the industry of not being able to distribute our magazines.’’
Bauer Media NZ published entertainment, lifestyle and current affairs titles including the
New Zealand Listener, Woman’s Day, New Zealand Woman’s Weekly, North & South and Next, along with a digital network.
All New Zealand Bauer staff were advised yesterday morning that the business was no longer viable and that it intended to close. Staff said it had come as a complete shock and many were unprepared to offer comment as they digested the news.
EY has been appointed to work alongside Bauer NZ to wind down the business.
Bauer’s Australia and New Zealand chief executive, Brendon Hill, said: ‘‘Magazine publishing in New Zealand is currently suspended as part of the Government’s decision to move to the Covid-19 level four restrictions. We understand the Government’s decision to move to Covid-19 level four, 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.
‘‘In response to the situation, Bauer carried out an urgent review of its New Zealand operations and considered all options to keep part or all the business open, including engaging with the New Zealand Government.
‘‘An active search is under way to find buyers for our New Zealand assets, including our many iconic titles; however, so far an alternative owner has not been found.’’
Faafoi said the Government could have provided half a million dollars for Bauer through the wage subsidy scheme or the business finance guarantee but the company had not sought that.
‘‘In recent conversations I had with Bauer, they indicated they were not interested in seeking any forms of Government assistance. I also note that Bauer had indicated for some time, as have other media organisations, that they were facing challenges around viability of their operations here in New Zealand before the Covid-19 pandemic . . .
‘‘[The] Government is looking at the overall state of New Zealand media’s health and sustainability in light of Covid-19, and there will be more news to follow on this in due course.’’
Ruth Cobb, general manager of PrintNZ, said the Bauer titles were a significant portion of the printing industry’s work. Many were the specialist sort of content that people wanted to read in print format and would not transfer well to online, she said.
‘‘It’s a devastating blow for print . . . overall but in particular for the Auckland market and the company that prints these magazines.’’ The magazines are printed by Webstar.
Bauer staff will get full redundancy pay and leave entitlements.
Former Metro editor Bill Ralston said the decision was tragic. The killer blow had been the ban on magazine sales during the lockdown period. ‘‘Eighty years of the Listener gone because some clod in Government decided to ban the publication.’’
An exemption classifies media companies NZME and Stuff as essential businesses and allows them to publish their daily and Sunday newspapers. The MPA had lobbied the Government to be allowed, too, but was refused.
Only a ‘‘very limited’’ number of community newspapers in the more remote parts of the country would be allowed.
A former Bauer employee who did not want to be named said she was not surprised. ‘‘It was always coming – advertising has been grinding to a virtual halt for the past couple of years. There are some amazing journalists working at Bauer, but it struggled to move with the times, and find its niche in the online world. I’m incredibly sad for them.’’
The decision to close the business was effective from yesterday.