April 12, 2012 / 8:53 PM / in 6 years

Canada's Postmedia eyes sale of HQ, posts loss

* Postmedia says there are talks on sale

* Reports loss as advertising slump hurts revenue

TORONTO, April 12 (Reuters) - The publisher of Canada’s National Post newspaper as well as he country’s biggest chain of daily papers posted a quarterly loss on Thursday and said it is eyeing the sale of its Toronto headquarters.

“It is one of our biggest assets and we’d be open to it but nothing’s been announced in terms of our plans to move or to sell,” Postmedia Network Canada Corp spokeswoman Phyllise Gelfand said.

The property is well outside Toronto’s financial district, and the company would plan to lease space downtown in the event of a sale, she said.

“There are discussions taking place,” she said, echoing comments made by Chief Executive Paul Godfrey after the company reported a loss of C$11.1 million ($11.2 million) for its second quarter.

Postmedia, created in July 2010 to buy the newspaper assets of bankrupt media company Canwest, has cut costs and sought to reshape its titles for the digital age to increase revenue from its websites, smartphone and tablet apps, and other services.

The company posted a C$12.5 million loss in the year-before quarter.

Postmedia, whose other titles include the Montreal Gazette, the Ottawa Citizen and the Vancouver Sun, said there was continued pressure on advertising sales in the quarter, with total revenue falling almost 8 percent to C$98.6 million.

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