Magazine and newspaper distributor Dawson Holdings' bad month has just got worse. Still reeling from the loss of a magazine distribution contract worth £116m in turnover to Smiths News, Dawson has lost a further two contracts with Comag and Associated Newspapers worth an aggregate £139m in revenue. All the lost contracts will end in 2010.
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The economic downturn has hit the media sector hard and distributors are an obvious target when trying to squeeze out savings. It appears Dawson is the main victim in a war of attrition at the moment. Dawson's shares have now shed almost three quarters of their value over the past month and it will take some time before investor confidence is rebuilt.
