Discovery to shutter its stores, slash jobs

Discovery Communications, the media company behind the educational program “Planet Earth” whose networks include Discovery Channel and Animal Planet, plans to close its 103 retail stores and lay off about 25% of its total workforce.

The stores will close in the fall. About 1,000 workers at the stores and elsewhere in the company will lose their jobs, Discovery said Thursday.

Discovery will sell its merchandise through its catalog and over the Internet as well through as licensing operations to such retailers as Toys R Us and Hudson Group, which operates Discovery Channel Airport Stores.

David Zaslav, chief executive of Discovery Communications, noted that the company’s Internet sales had grown 144% year to date over last year.

Zaslav, who was NBC Universal’s cable and new media president before joining Discovery late last year, is closing the stores as part of an effort to cut labor costs and focus on programs such as “Dirty Jobs” and “MythBusters.” Discovery is owned by Discovery Holding Co., Advance/Newhouse Communications and John S. Hendricks, Discovery’s founder and chairman.

Analysts have speculated that Discovery is planning a public sale, particularly in light of another announcement that simplified the company’s ownership structure. This week Discovery Communications bought back Cox Communications’ 25% stake in Discovery. In exchange, Discovery gave Cox its Travel Channel and Travelchannel.com units plus $1.3 billion in cash.

The company is following other media giants, including Walt Disney Co., which sold its U.S. and Canadian retail shops to Children’s Place Retail Stores Inc. in 2004.

Silver Spring, Md.-based Discovery Communications posted a $121.5-million loss in its retail and educational division last year.

Discovery Holding shares fell 25 cents to $22.65.