Sources say staff have been told parent company has run out of money during UK lockdown

This article is more than 5 months old

This article is more than 5 months old

The Jewish Chronicle and Jewish News are to close and their staff made redundant, according to sources at the outlets, after their parent company ran out of money as the coronavirus pandemic devastates the media industry.

While some news outlets have furloughed journalists in the hope of riding out the crisis, sources at the Jewish Chronicle say staff were informed the parent company had run out of cash and could not continue trading.

The timing is particularly grim for staff as it is the start of the festival of Passover.

A collapse in print sales and advertising revenue is hitting news outlets hard, with many local and independent newspapers facing severe financial strains.

Last summer, the Jewish Chronicle – first published in 1841 – received new funding from its owner, the charitable Kessler Foundation. The money was provided by 20 individuals, families and charitable trusts.

In February, the Jewish Chronicle agreed to merge with its rival title Jewish News in an effort to secure the financial future of Jewish media in the UK. The deal had yet to be finalised, but sources said both outlets were effectively being treated in the same manner with staff laid off.

Management told staff they were in negotiation with the Kessler Foundation to possibly secure the future of Jewish Chronicle in some form, potentially involving rehiring a number of people, although this would require new funding.

Following the publication of this story, the Jewish Chronicle confirmed the news, which is likely to leave creditors out of pocket: “Despite the heroic efforts of the editorial and production team at the newspaper, it has become clear that the Jewish Chronicle will not be able to survive the impact of the current coronavirus epidemic in its current form.”

They said every effort is being made to continue publication while efforts are made to save the outlets.

On Tuesday, media analysts at Enders Analysis predicted a long-term blow to the British news industry as a result of the pandemic, with as many as a third of journalists losing their jobs.

News outlets that rely heavily on print revenue have been hit particularly badly, with people not going to shops to buy copies and advertisers cutting back, leading to warnings that many outlets will close.

• This article was amended on 8 April 2020 to change the headline.