Australia under review as Bauer shuts New Zealand magazine business

Bauer is shutting its New Zealand business and putting its Australian business under review.

German media company Bauer Media, the Australian publisher of Women’s Weekly and Woman’s Day, is permanently shutting down its New Zealand magazine business and is understood to have hired EY to launch a strategic review of its operations in Australia.

The company announced the closure of operations across the Tasman on Thursday, with 237 staff to be made redundant.

It is understood that the company is now closely scrutinising the Australian arm of the business, with assistance from accounting firm EY. It is understood that a closure of the Australian business is under consideration as part of the strategic review through EY’s Stewart

McCallum.

Bauer Media blames the closure on the severe economic impact of COVID-19.

“The closure brings to an end many decades of publishing in New Zealand and means the company’s 237 staff will be made redundant,” the company said in a statement.

Bauer Media NZ publishes entertainment, lifestyle and current affairs titles including the NZ Listener, Woman’s Day, New Zealand Woman’s Weekly, North and South and Next, along with a digital network.

“This is a very sad day for Bauer in New Zealand, for our much-loved and respected titles, and most importantly for our committed and talented team who have worked tirelessly to inform and entertain New Zealanders,” said Brendon Hill, chief executive of Australia and New Zealand.

Magazine publishing in New Zealand has been temporarily banned as part of the government’s decision to move to COVID-19 Level 4 restrictions.

“We understand and fully support that decision, but it has put our business in an untenable position,” he said.

The company had considered all options to keep part or all of the business open, he said, as part of an urgent review.

This included engaging with the New Zealand Government.

“However, an alternative owner has not been found.”

In Australia, Bauer publishes 36 titles, including Woman’s Day, Women’s Weekly and Elle.

The situation comes after it recently agreed to buy the rival Pacific Magazines business from Seven West Media for $40m, and the transaction was recently offered clearance from the Australian Competition and Consumer Commission.

Should Bauer also permanently shut its Australian operations, about 600 jobs could be affected.

The German company is believed to be considering an approach to Seven West Media over a lower price to pay for the Pacific Magazines business should it proceed with the transaction.

Those with knowledge of the situation say if a lower price can’t be achieved the German company will have no other choice but to put its Australian operations and those of Pacific Magazines into administration.

A Seven spokeswoman declined to comment on its Pacific sales to Bauer.

With Lilly Vitorovich