Approximately 60 employees of the Observer Media Group (OMG) could be unemployed come Dec. 1.
The management of the OMG, that operates The Daily Observer, Observer Radio and Hitz FM, has informed its staff that the company will cease operations on Nov. 30, 2018.
Earlier this month the company was granted an extension to remain in the building it occupies close to the V.C. Bird International Airport. They have occupied the now defunct Antigua Sun News Paper building which was owned by convicted fraudster Allen Stanford since 2012.
Management was served notice by the joint liquidators of the Stanford Development Company dated July 26, 2018 to vacate the building.
Plagued with financial issues and litigation, it has been a bumpy ride for Observer Media Group since its two founders – brothers Samuel ‘Fergie’ Derrick and Winston Derrick died – the latter in 2013.
In a staff meeting yesterday, the media entity’s management informed employees that their last day of operation will be Nov. 30.
The printing staff will reportedly be severed in November 19. A source revealed they were further informed that at the end of November, employees are expected to receive their full or partial severance packages.
During the month of January, Observer’s Chief Operating Officer Darren Derrick announced that the estate of Samuel ‘Fergie’ Derrick was offering for sale the majority of its shares in the two companies.
The private placement was for 45,000 shares in each company, which represented 45 per cent of all issued shares in the companies.
However, the offer was short lived when the Eastern Caribbean Securities Regulatory Commission intervened, which resulted in the company removing the website created specifically for members of the public to purchase shares.
Among the reasons given for the intervention was OMG’s inability to publish its audited accounts, which made the offer illegal. A warning was also issued a day after by Georgia Derrick, the late Winston Derrick’s daughter, cautioning the public not to purchase shares.
Observer Media Group had reportedly failed to inform potential buyers of the risks involved in purchasing shares and the fact that they were not going to benefit from returns.
Observer Radio began broadcasting in 2001, following a Privy Council ruling. The Daily Observer Newspaper printed its final copy in August this year, moving to free online edition for its many readers who previously paid a subscription fee.
There has been no official statement yet from management on the decision to close the company.
