We are catching up on the news about the furloughs and disruption last week at Adventure Sports Network Group, home to Surfer, Snowboarder, Powder, Transworld Skateboarding, Bike and the Dew Tour.
The group was acquired in 2019 by debt-laden American Media, which used to own the National Enquirer and currently publishes US, In Touch and OK and Men’s Journal, among other magazines. American Media merged with Accelerate360 in August and was renamed A360 Media.
We talked to several people familiar with the situation, who told us:
A significant portion of the ASN staff – some peg it at three quarters others at about 50% – were furloughed. About half of the furloughs were effective Friday and half will be effective Nov. 20.
The staff impacted Friday include those that work on Surfer and Bike, in addition to many studio and support staff.
Most of the staff of Powder, Transworld Skate and Snowboarder will be furloughed in November.
All operations for Surfer, Bike and Powder will be suspended, both digital and print, until business conditions improve. Transworld Skateboarding, Snowboarder and New Schooler are continuing digital operations, and are integral to the Dew Tour, which remains intact and has upcoming events in February and June.
“Due to the pandemic’s economic impact on the industry and the cancellation of live events, staff furloughs and the suspension of operations for some brands are necessary for the time being,” an A360 Media spokesperson told SES via email.
A360 Media implemented furloughs in other media properties it owns two weeks ago. However, no other brands are going completely dormant as is the case with Surfer, Bike and Powder.
The company is paying furloughed employees health insurance through the end of the year. Furloughed employees were not required to turn in their laptops, we are told.
Since the news broke Friday, more than a dozen parties have expressed interest in buying some of the titles, we are told. However, A360 is reportedly not interested in selling thus far. We’ve been told that when American Media shuttered Transworld Moto when it acquired ASN in 2019, there were offers to buy it and the company did not pursue any of the offers. To this day, Transworld Moto is dormant, people told us.
Sadly, several people we talked to said the new issue of Surfer is one of the best the magazine has produced in years.
As far as the publications themselves, the business side remains very challenged, and it has been for a long time. One person said the size of the business has been shrinking for many years due to the financial challenges of both the endemic industry and the rise of search and social advertising for non-endemic companies. So while the conditions under American Media ownership have been described to us as chaotic and frustrating, the underlying challenges were there before they purchased ASN.
A major question and worry of those being furloughed is whether A360 will pay severance if the furloughs become permanent.
