Estonian Kalev Media Group To Close Down Ten Magazines

Article published on Jan. 15, 2009
community published
Article published on Jan. 15, 2009
Estonian media sector is living one of the hardest moments of its young life: after a fast growth it ended up facing the effect of the crisis, and the outcomes are not pleasant at all.

Kiosks will start having a lot of free spaces starting from next week: “Just”, “Praktiline” “Ärielu”, Arvutikasutaja”, “Sporditäht”, “Basket”, “Moto”, “Avenüü”, “Avenüü Professional”, “Muumi". will close down allowing Kalev Meedia to save some EEK 3,5 Mln every month.

The CEO of the group, Alar Pink, said:  “The management is seeking for options to continue operating, but current situation is that there is no money for investments and as a manager I have to make decisions”, remarking how the choice was not unexpected.

Kalev group recently went on the top of the news because of its financial situation: it has grown to EEK 2.7 mln since October, when it was EEK 1.7 mln but the company had some problems on paying the rent of its offices and not it owns one month’s amount.

The result of this plan, unfortunately, is that some hundred people will not have the chance to be “converted” in other magazine and so will have to be sadly added to the new update of the Estonian unemployment rate.

And, according to a Lithuanian journalist, the situation is not getting any better also in his country as, to EstonianFreePress, he said that “I have my contract till March, then nobody knows. With this crisis and the recent increase on the VAT for journalism – now at the 19% - it will be hard to survive in this field.”