JOHANNESBURG - The Board of Directors of Caxton & CTP Publishers & Printers Limited (“CAT”) has today announced that it has begun a process of withdrawing from magazine publishing and associated businesses.
The steady and continuous reduction in the overall amount of Ad-spend 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.
According to a statement by the board of directors, "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. The Covid-19 lockdown has seen a significant downscaling of activities by all the group’s clients."
Caxton said that 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.
"In view of these challenges, the group has decided, in principle, to close its magazine division. Whilst this has been a difficult decision it has been unavoidable in the interest of the group as a whole. The company is in the process of consulting with its employees. The group would be keen to engage with any other parties and publishers who would be interested in taking over any of its titles," the board said.
The titles affected are:
- Country Life
- Food & Home
- Garden & Home
- Rooi Rose
- Woman & Home
- Your Family.
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