The Week: Media news - The Observer faces trouble

The future of The Observer has been thrown into question after its parent, the Guardian Media Group, suffered a record pre-tax loss of £89.8 million.

In a memo to GMG staff, its chief executive, Carolyn McCall confirmed reports that the group is considering closing the paper as part of a three-year strategic plan to improve the fortunes of the group and of its flagship daily title, The Guardian. The company is also mooting the possibility of turning the title into a weekly news-focused magazine.