NYT To Close Distribution Subsidiary
The New York Times Co., parent of the Worcester Telegram & Gazette and the Boston Globe, has pulled out of the wholesale newspaper distribution business, leaving 550 employees jobless.
The company said it would close City & Suburban, its distribution subsidiary that delivers the New York Times and 200 other newspapers and magazines to newsstands and retailers in the New York metropolitan area. The company formed City & Suburban in 1992 but will now rely on its own delivery drivers and third-party distributors to deliver its periodicals.
The company said the 550 employees losing their jobs as a result of the closure would be offered severance packages. The company said it would update its earnings outlook in the fourth quarter.
The company recently reported a July revenue decrease of 10 percent compared to July 2007 and an advertising revenue decrease of more than 16 percent over the same period. The company's New England Media Group saw advertising revenue drop by 24.5 percent in July.
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