- The Guardian,
- Wednesday April 11, 2001
The Industry Standard magazine, the weekly news source for a generation of dot.com entrepreneurs, yesterday closed its European operations only six months after starting up with the loss of about 60 jobs.
In a move similar to Thestreet.com's closure of its British operations, it was the US parent company, Standard Media International, that decided to pull the plug.
The London-based publishing operation had last week confirmed that it was seeking a buyer - and the speed of the decision to shut it down took staff by surprise.
"They're overstaffed in the US, and it appears the easiest solution was to shut us down," said one employee. "It's pretty galling, to be honest."
The company is understood to have promised to honour all its debts.
Journalists writing about the internet economy have not been immune from the downturn that has so badly affected those working in it.
Red Herring has made job cuts and Business 2.0, the new economy magazine owned by Future Network, is up for sale.
Pearson, the owner of the Financial Times, has a 2.5% stake in Standard Media International but turned down the chance to make a bid for the European edition's publisher. Other investors in the venture included French billionaire Bernard Arnault.
The Industry Standard Europe was launched at a lavish cocktail party at the prestigious Coq d'Argent restaurant in the City of London only six months ago.
During its short life the magazine attracted significant advertising but had been looking for partners to improve its pan-European distribution. Publisher Neil Thackray said last week that he was confident the magazine would reach break-even at the end of next year.
Earlier this month the American parent company said it had shelved plans for a German language version of the magazine.
Financial news magazines and websites enjoyed boom times before the dot.com bubble burst, but advertising revenues have slowed as businesses have become bankrupt and the flow of deals slowed.
Thestreet.co.uk has closed, Netimperative has been rescued from financial collapse and Sharecast has merged with Nothingventured.com.
Even FT.com, which has been the strongest brand in the sector, has been forced to cut about 10% of its staff.
