GNM prepares to launch new-look Observer

Guardian News & Media (GNM) is set to revamp the Observer.

The new-look Sunday title, which currently has a circulation 351,000 copies, will be relaunched on February 21 with the same £2 price tag, according to reports.

The redesign will see the paper split into four-sections, which will be made up of news, sport, a review section and the popular Observer magazine.

The revamp comes after GNM was forced to slash the Observer Music Monthly, Observer Sport Monthly, and Observer Women in a bid to cut costs after reporting a £57m pre-tax loss in the year to March 2009.

As such, rumours began to circulate that the publishing group planned to sell off the Observer.  However, the company insisted that the title “continued to perform well”.

In the latest ABC report, which was released earlier today, the Observer recorded a 16.5% year on year decline, taking its total circulation down to 351,000 from 420,000 copies last year.