Popular Brit-Asian weekly Eastern Eye seems to be in trouble after reports today suggested the paper had gone into administration.
According to a report on MediaGuardian, Eastern Eye and the African-Caribbean publication, New Nation, both under the Ethnic Media Group, have been put up for sale after months of deteriorating advertising revenues and years of falling circulation.
The news was announced to the group�۪s 25 members of staff earlier this week. They will all be made redundant if a buyer is not found soon.
In reference to data made available by Audit Bureau of Circulations (ABC), New Nation has sold an average of 22,081 copies of each issue in the last six months of 2005. Currently paper sales were around 6,000 per issue.
In comparison, Eastern Eye sold an average of 20,844 copies over the same period but now sells fewer copies a week than New Nation.
The report further added that New Nation was being discontinued immediately. There has also been speculation about Eastern Eye’s future and that the paper’s last issue was being released on Friday (23rd January). However, according to reliable sources, work at the paper continues with preparations already in place for next week’s issue.
Some have even gone on to say that the losses incurred by New Nation affected the business of Eastern Eye and it would be in the paper’s best interest to continue as an independent. Eastern Eye is renowned for the Asian Business Awards, Asian Rich List, Success magazine, India Business Reports and Sexiest Asian List.
A source at the paper spoke exclusively to BizAsia.co.uk, “Now that we no longer have to subsidise New Nation, I hope that Eastern Eye may at long last have the resources to realise its full potential.”
There have also been unconfirmed reports that a new buyer for Eastern Eye had been sought this evening. Asian Media & Marketing Group publishers of Garavi Gujarat and GG2 Life magazine were looking likely to taking over management of the troubled paper.
It remains to be seen how much money will be injected into the new independent Eastern Eye and how this will translate to greater sales.
An announcement by Ethnic Media Group is expected tomorrow afternoon.
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