Thursday, December 20, 2007

F+W Shutters Multiple Hobbyist Magazines

F+W Shutters Multiple Hobbyist Magazines
Publisher shuts down five titles, lays off as many as 40 employees.
by Jason Fell

F+W Publications has shuttered five magazines under its Wisconsin-based Krause Publications division, FOLIO: has learned. The titles to be closed include Antiques and Collectibles Journal, Comics & Games Retailer, Toy Cars & Models, Toy Shop and Vintage Motorcycles, the publisher confirmed.

The publisher made the announcement to employees earlier this month in an internal memo. As many as 40 employees have been laid off, the source tells FOLIO:, although another source put the number closer to 15. F+W declined to confirm the number of layoffs.

"We take into consideration the marketplace we serve and the opportunities available for each of our magazine titles. After much analysis and deliberation, we have determined to cease publication of these underperforming tittles," chairman and CEO David Steward stated in an e-mail to FOLIO:.

"We are working to realign our business model and structure to meet the changing demands of the marketplace," F+W magazine division president David Blansfield said in the e-mail. Krause will continue to publish its other hobbyist titles, including Antique Trader and Old Cars Weekly.

F+W purchased Krause Publications in June 2002 for $120 million.
CIRCULATOR: Newsday, Hoy Circ Case Settled
By Kristina Joukhadar

The federal fraud investigation of two of the Chicago Tribune Co.'s newspapers has finally (almost) come to an end. It was announced yesterday that the Chicago Tribune Co. will pay $15 million to settle the federal investigation into fraudulent circulation practices at Newsday and the New York edition of Spanish-language daily Hoy that occurred between 2001 and 2004.

The newspapers have accepted responsibility for the fraudulent conduct of their employees, have cooperated with the government in the investigation and have already paid about $83 million in restitution to their advertisers. In addition, they have implemented "remedial management and internal auditing reforms."

Newsday publisher, president and CEO Timothy Knight said, "Over the past few years, we have made comprehensive changes in controls, systems, customer relations, policies and our management team to prevent this from occurring again."

Nine people have pleaded guilty to participating in the scheme, according to the Associated Press, including employees ranging from vice presidents to home delivery and circulation managers. All are awaiting sentencing.

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