Scribo opted to wind down and let go of staff because its “traditional route to market” has been squeezed by the Red Group administration, among other pressures.
Craig Davison, director of PMP’s Gordon & Gotch magazine distribution arm, said Scribo had lost 20% of its business in seven months, due in part to the closures of Borders and Angus & Robertson.
“Significant changes to market conditions have impacted the performance of The Scribo Group to the extent that the decision has been made to close the business.
“All publishers and retailers have been advised of this decision and trading with both sectors will be finalised over coming months.”
Davison said the decision was due to “increase in offshore online sales”, “closure of key retail outlets, including the Red Group”, and “increased competition from international wholesalers on the back of the strong Australian dollar”.
PMP wrote down Scribo’s value by $20m in its last half-year results back in February.
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