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Financial crisis prompts major restructure for Independent Newspapers as advertising, circulation decline
Independent Newspapers, a major player in South Africa’s media landscape, will undertake a major restructuring initiative as the company faces severe financial challenges, including the potential loss of banking facilities and a dramatic decline in advertising and circulation revenue.
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The restructuring follows a similar process from competitor Media24, and is prompted by the company’s increasing reliance on print media, which has become financially unsustainable.
Rising operational costs—particularly those related to paper and printing, which now account for 60% of expenses—combined with a shift in audience preferences toward digital platforms, have exacerbated the financial strain.
Independent Newspapers' struggle reflects a broader trend affecting print media globally, as traditional models falter in the face of digital competition.
Dr Iqbal Survé, executive chairman of Independent Media, who won Independent Newspapers, expressed the gravity of the situation.
“Print media has been an iconic pillar of our company for decades, but the current business model is no longer sustainable in a world where digital platforms offer far greater reach and engagement opportunities,” he stated.
The Survé family and Sekunjalo have previously supported the company financially, but the current model's unsustainability has made further restructuring inevitable.
The restructuring aims to address the imminent threat of losing banking support, which poses a critical risk to the company’s operations.
In addition to banking concerns, Independent Newspapers is grappling with the high costs of running print titles, which has underscored the need for a strategic overhaul.
The company has committed to managing the restructuring process transparently and fairly.
The company said consultations will adhere to the Labour Relations Act, and while no final decisions have been made, Independent Newspapers will explore all possible alternatives to avoid retrenchments and support affected employees.
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