Observer may close after review

A closure of the Observer, the 218-year old world’s oldest Sunday newspaper, is thought to be a possibility after owner Guardian News and Media (GNM) has kicked off a strategic review of the title. As it fights to adapt following the credit crunch and increasing shift towards online news, GNM is mulling all options for the title and may dramatically revamp sister title The Guardian. Guardian Media Group, which owns GNM reported a £89.8m pre-tax loss on Friday.