MtroMdia folds after distribution and budget cuts

MtroMdia, a pillarof Montreallocal news, is foldingdue to financial constraints.

According a statement,Mtro Mdiawas advised on Wednesday it could no longer continue its operations as its supporting institutions like Desjardins Culture, the economy and innovation ministry, and Investissement Qubecpulled out their funding.

Earlier this year, the city banned the Mtro newspaper's main mode of distribution, Publi-sacs, pushing the publication to take on a digital transformation.

At the time,Mtro MdiapresidentAndrew Mul had said the move would put pressure on the group as it faced cost increases with a change in distribution while being hit with a decrease in revenue leading to layoffs.

"The fact remains that we couldn't suffer a devastating loss of revenue all of a sudden,and follow an ambitious and expensive digital roadmap without external financial support," said Mul in a statement Friday.

"Time was my worst enemy and what I feared unfortunately happened, but suddenly and abruptly."

Created in April 2018 after acquiring the Mtro newspaper,Mtro Mdia has 17 publicationsin Montreal and the Quebec City region.

"The strange and paradoxical part of this story is that Mtro not only has a healthy balance sheet, but we have made enormous sacrifices over the past year to show our commitment to the future," said Mul.

Meta's decision to block Canadian news on Facebook and Instagram did not help the fledgling digital version of Mtro, Mul added.

Montreal MayorValrie Plantecalled the suspension of Mtro's activities a "a major loss for the media ecosystem and the daily lives of Montrealers."

"The radical transformation of the media business environment calls for urgent reflection and collective solutions. I salute the work of the entire Mtro Mdia team and the journalists who have covered Montreal news over the years," said Plante on Twitter.