Strathmore Standard to shut down this month

By Miriam Ostermann, Associate Editor

The announcement by one of Canada’s largest newspaper publishers to close unprofitable publications and reduce salary expenses by 10 per cent before the start of their new fiscal year struck close to home last week, as two Alberta titles were included on that list – the Camrose Canadian and the Strathmore Standard.
Postmedia Network Inc. announced the closures of six Canadian community newspapers, cancellations of print editions at others, as well as layoffs and an offering of buyout packages to unionized and editorial staff.
The announcement was made nearly three months after reports of Postmedia’s second quarter results revealed a $19.1 million decrease – or 10.8 per cent –in revenue for the quarter, primarily due to dwindling print advertising revenue of $16.3 million and plummeting print circulation revenue of $4.6 million.
In comparison, the report also showed a $2.4 million increase for the quarter in digital revenue, resulting in a 12 per cent increase in the overall digital advertising revenue.
As a result, Postmedia Executive Chairman and CEO Paul Godfrey and president and Chief Operating Officer Andrew MacLeod sent an internal memo to the company’s staff on June 26.
“The reality we must face is that the traditional revenue balloon continues to deflate at a much faster rate than we can inflate the digital revenue balloon. We must stabilize our cost structure across the organization in order to reflect the legacy revenue declines so that we can continue to invest in our digital initiatives,” the memo stated.
The media conglomerate will cease operations of the Camrose Canadian and the Strathmore Standard in Alberta, while shutting down the Kapuskasing Northern Times, Ingersoll Times, Norwich Gazette and Petrolia Topic in Ontario. The High River Times will change from biweekly publication to weekly, while the Portage Daily Graphic in Portage la Prairie, Man., and Ontario papers the Pembroke Observer and the Northern News in Kirkland Lake will stop the printing presses but remain active online.
With the Strathmore Standard closing, three staff positions – one each in editorial, sales and administration – have been eliminated while others received accommodation within other Postmedia publications.
“These are difficult but necessary decisions and we are grateful to our loyal readers and advertisers and the dedicated staff of the Strathmore Standard,” said Phyllise Gelfand, vice president of communications with Postmedia. “Flyer delivery will continue through our Calgary Flyer Force operation and we also have a number of community newspapers and larger daily newspapers – including the Calgary Herald and the Calgary Sun – that continue to publish in Alberta.”
The Strathmore Standard, a free weekly community newspaper, was founded in 1909. Over the years, it changed ownership a number of times. Bob Giles, the third generation of a family that built careers in the newspaper industry, was the editor, owner and publisher in the late 1970s and into the early 1990s.
“I’m not surprised but I can’t help to be sad to see it go,” Giles said.
Postmedia stated in their memo that the changes were critical to ensure the company hits the ground running in the new fiscal year, which starts Sept. 1. The closures and updates are expected to take place over the next few weeks.