Receiver sacks 13 staff at magazine publisher

Thirteen 3media staff were laid off this week, the day after Korda Mentha receivers moved into New Zealand's largest trade magazine publisher.

Secured creditor Bank of New Zealand appointed Brendon Gibson on Monday and Korda Mentha laid off "surplus" staff the next day.

Only one editor - Ellen Read of NZ Management - was among the 13 layoffs.

Gibson said he did not expect to make his first report on the statusof the company for two months.

Last Monday 3media management voluntarily put the company into liquidation. But the bank's decision to appoint a receiver means the liquidator will have to wait until the bank has recovered its debt.

3media was formed in February 2007 from the merger of Profile Publishing, Review Publishing and Marketplace Press.

Gibson said the current plan was to continue the magazines while seeking to sell them. He said there had been interest from several buyers for individual titles.

All media companies are battling an advertising downturn.

Reg Birchfield - one of the company's three founders and directors - said yesterday that the economic challenges had "not helped".

But he said 3media's situation was due to "human failure" in the company's management.

Birchfield - who has edited NZ Management in the past - rejected a suggestion that he planned to buy it. He said it would be edited by former editor Vicki Jayne.

Other 3media titles include NZ Marketing, AdMedia, On Film, FMCG, Foodservice, In My Kitchen, NZ Hardware Journal, Security Today, Wares, Apparel, NZ Outdoor Power Equipment and C Store.

3media also publishes three directories: Agencies & Clients for the advertising and media industry, On Film Data Book for the film and TV industry and the Apparel Trade Directory.