Britain's "The Observer" newspaper may close

Money losing Guardian Media Group could close its weekly newspaper The Observer in a drastic cost-cutting drive, the Sunday Times reports. Members of the Scott Trust, a charitable foundation that owns GMG, had discussed the plan in early July, according to The Sunday Times.

Members were shown trial copies of an Observer-branded magazine that could replace the Sunday paper and would be published instead on Thursdays, the paper reported. GMG management agreed to put the scheme on hold while an alternative was worked out to slim down The Observer and keep it as a Sunday publication, said the report.