Métro Média suspends all publications, citing monetary troubles

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

Based on a be aware from CEO Andrew Mulé, the corporate was advised Wednesday “that we might now not proceed our operations with virtually 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 hearken to and with whom we’ve communicated recurrently and actively over the previous few months.”

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

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

“The actual fact stays that we couldn’t all of a sudden undergo a devastating lack of income and comply with an formidable and costly digital roadmap with out exterior monetary help. We’re in any case a small enterprise with out funding, and the untimely finish of our print media has left us with no technique to rapidly fund our future with no important funding.

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

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“Time was my worst enemy and what I feared sadly occurred, however abruptly and all of a sudden.”

Métro Média was shaped 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 bought publications included neighbourhood newspapers like Cités Nouvelles, Courrier Ahuntsic, Journal de Rosemont, Messager LaSalle and Beauport Specific. They have been ultimately rebranded as Métro newspapers.

The sale additionally included Italian group 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 large sacrifices over the previous yr to point out our dedication to the long run,” Mulé wrote in his be aware 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 yr to working a wholesome and sustainable enterprise with a practical and viable marketing strategy.”

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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, mentioned the corporate had plans to type a cooperative “and be in keeping with our social mission.”

“Sadly this undertaking 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. 20 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 information accessible 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 essential to the survival of Métro’s group papers.

In his message Friday, Mulé mentioned he was “happy with our lengthy historical past” with a few of the group papers going again many years.

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“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’re underrepresented in Quebec and I sincerely hope somebody fills the plain 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 effectively know that scripting this message may be very making an attempt. Not solely do I really like Montreal, however I really like what Métro has performed for this metropolis.

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

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