Métro Média suspends all publications, citing monetary troubles

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Métro Média, which owns the Métro newspaper in Montreal and neighborhood publications in Montreal and Quebec Metropolis, introduced Friday afternoon it was suspending all its actions efficient instantly.

In response to a notice from CEO Andrew Mulé, the corporate was advised Wednesday “that we may not proceed our operations with nearly instant impact because of the lack of continued assist from establishments — Desjardins Tradition, the Ministry of Financial system and Innovation, Investissement Québec and SODEC — which we take heed to and with whom we now have communicated repeatedly and actively over the previous few months.”

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In his notice, Mulé particularly blamed Montreal’s resolution to outlaw the distribution of the Publisac flyer bag, which Métro used to distribute its neighborhood newspapers within the metropolis. He known as the transfer “a very devastating blow” to Métro.

“It was apparent to anybody paying consideration that Métro had already launched into a serious and vital digital shift and that we had invested every little thing we had in higher editorial and digital merchandise,” Mulé wrote. “We then confirmed resilience, agreed to cope with a scenario that was imposed on us and determined that we have been going to wager every little thing on our digital future with the imaginative and prescient of robust and lasting native data for each the Montreal market and that of Quebec Metropolis.

“The very fact stays that we couldn’t instantly endure a devastating lack of income and comply with an formidable and costly digital roadmap with out exterior monetary help. We’re in spite of everything a small enterprise with out funding, and the untimely finish of our print media has left us with no method to rapidly fund our future and not using a vital funding.

“So I did what anybody would do in my place and I spent the final 12 months knocking on each door in Quebec and Canada I may knock on to attempt to save our mission and our enterprise.

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“Time was my worst enemy and what I feared sadly occurred, however abruptly and instantly.”

“An atomic bomb” for native information

The lack of the newspapers and journalmetro.com web site was “unhappy however anticipated,” stated École des médias de l’UQAM professor Jean-Hugues Roy.

“It’s tragic … it’s an atomic bomb for native information in Montreal and Quebec Metropolis,” he stated. “It is part of the historical past of journalism, but additionally of sure districts, that’s disappearing. Le Messager de Verdun celebrated its one hundred and tenth anniversary this 12 months. … These are communities that depend on these newspapers as sources of stories.”

His colleague Patrick White known as it “very, very unhealthy information for native democracy” within the two cities. “It’s the tip of the hyperlocal information mannequin in Montreal and Quebec Metropolis. We are going to not cowl borough councils.”

Éric-Pierre Champagne, vice-president of the Fédération professionnelle des journalistes du Québec, stated it was unhealthy information for society usually. “When information doesn’t come out a winner, it’s the general public that comes out shedding.”

Annick Charette, president of the Fédération nationale de la tradition et des communications union (FNCC), stated she labored with Mulé for a number of months to tug the corporate out of its disaster.

“We labored laborious with the homeowners, we tried to search out parallel options, we had conferences with a number of traders, town … I hope this closing is just momentary.”

Métro Média had about 100 workers, with greater than half unionized. There have been some layoffs final winter and over latest weeks.

Mulé declined an interview request, saying he had stated every little thing in his message.

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Montreal mayor Valérie Plante stated she was saddened by the announcement. “It’s a serious loss for the media ecosystem and day by day lives of Montrealers,” she wrote on X, previously Twitter.

“The unconventional transformation of the media enterprise atmosphere requires pressing reflection and collective options. I salute the work of the whole Métro Média group staff and its journalists who’ve lined Montreal information over time.”

Firm made “big sacrifices”

Métro Média was fashioned in 2018 by Michael Raffoul when he bought Métro and 29 different publications from TC Transcontinental as a part of the latter’s exit from the information enterprise. The publications included neighbourhood newspapers like Cités Nouvelles, Courrier Ahuntsic, Journal de Rosemont, Messager LaSalle and Beauport Categorical. They have been finally rebranded as Métro newspapers.

The sale additionally included Italian neighborhood paper Corriere Italiano, which Métro shut down in March.

“The unusual and ironic a part of this story is that Métro not solely has a wholesome stability sheet, however we’ve made big sacrifices over the previous 12 months to indicate our dedication to the longer term,” Mulé wrote in his notice Friday. “Our present suppliers ought to know that Métro has liquidity issues and monetary establishments are afraid to finance our business. Fb definitely hasn’t helped our trigger over the previous month. However on paper, I guarantee you that I’ve been dedicated over the previous 12 months to working a wholesome and sustainable enterprise with a sensible and viable marketing strategy.”

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In response to statistics printed on its web site, Métro reached 100,000 readers every week, and its web site had 1.9 million distinctive guests a month. Its neighborhood newspapers distributed 165,000 copies every month.

Mulé, who beforehand labored in gross sales on the Montreal Gazette, Benjamin Information Inc. and Transmet Logistics earlier than becoming a member of Métro in 2018, stated the corporate had plans to kind a cooperative “and be according to our social mission.”

“Sadly this mission was placed on ice, following our liquidity disaster.”

Métro was created by Transcontinental in 2001 as a free day by day newspaper distributed in Montreal’s métro system, and rapidly gained a competitor with Quebecor’s Montréal Métropolitain, later renamed 24 Heures. Twenty years later, Métro was solely printing as soon as every week and 24 Heures had stopped its print product utterly.

With commuters more and more on their smartphones and wi-fi knowledge obtainable within the métro, the demand for a day by day print newspaper declined over time. Métro developed a plan for a digital transition however couldn’t abandon print revenues within the meantime. In 2019, Mulé argued strongly towards Montreal’s Publisac ban, saying the distribution system was vital to the survival of Métro’s neighborhood papers.

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Roy stated the Publisac argument confirmed that the enterprise mannequin was tied to promoting. “That doesn’t work anymore,” he stated. “Promoting can not represent the only or principal supply of revenues to fund information.”

In his message Friday, Mulé stated he was “happy with our lengthy historical past” with a few of the neighborhood papers going again a long time.

“To the completely different communities that make Montreal what it’s, thanks, you’re the essence of Montreal and we’re proud to be your voice. We all know you might be underrepresented in Quebec and I sincerely hope somebody fills the apparent void we see as readers and workers. Being one of many final gamers in native information in Montreal, I can guarantee you that Montreal wants extra journalists, not fewer.

“These of you who know me nicely know that scripting this message could be very attempting. Not solely do I like Montreal, however I like what Métro has accomplished for this metropolis.

“From the underside of my coronary heart, I’m sincerely sorry that I couldn’t do extra.”

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