BostonNOW folds, just short of one-year-old mark

A growing, almost year-old free daily newspaper in Boston published its last issue Monday because of economic conditions --- in Iceland.

It’s another example of global influence in U.S. operations.

The closing of BostonNOW, a so-called commuter paper with 119,000 daily circulation, is a result of deteriorating economic conditions --- including soaring interest rates --- in the North Atlantic island nation, location of its primary investor, Baugur Group of Iceland, notes Grumpy Editor.

The paper would have marked its first full year on Thursday and was on track to reach the profit column in year three, “just as the business plan called for,” says publisher Mike Schroeder.

“The death of any newspaper is a sad thing,” adds CEO Russel Pergament, “but the death of a vibrant, flourishing newspaper because of economic turmoil thousands of miles away is beyond sad and is something we never anticipated and for which we were totally unprepared.”

BostonNOW’s editorial content, especially its strong local reporting, has been picked up dozens of times by Boston's paid dailies (Globe and Herald) and TV outlets, relates Schroeder.

The Economist magazine in January lauded BostonNOW as one of the finest free dailies in the United States.

Baugur Group’s other investments include British retailers House of Fraser and Karen Millen.