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Johnston Press brought out of Administration

17 November 2018

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Update 17.11.2018

Only yesterday was it announced that Johnston Press were placing themselves in to administration. Now, the press company have be brought by JPIMedia.

This acqusistion will save all jobs. 

Mr King, CEO, believes the sale was crucial for Joshton Press businesses ''as it ensures that operations can continue as normal, with employees' rights maintained, suppliers paid and newspapers printed''.

JPIMedia Director, John Ensall said: "In the absence of another financial solution being available for the business, we are pleased to have reached this agreement to acquire Johnston Press, to protect the value of the business, preserve jobs and allow for the uninterrupted publication of its websites and newspapers." 

He said that as part of the transaction, it had reduced debts massively and looks to invest £35m into the business.

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16.11.2018

Johnston Press, who publish the I newspaper and the Scotsman, announces tonight their intention to place themselves in administration.

It was only last month that the press company put itself up for sale, in hope to refinance £220m of debts.

After offers of ‘’considerable interest’’, including an offer from the Daily Mail publisher DMGT, it was said none delivered ‘’sufficient value’’.

The board responded by concluding that there is no value in the companies’ ordinary shares and that the best option now is to place the company and its subsidiaries into administration.  Restructuring specialists, AlixPartners are to handle the administration.

‘’It is envisaged that, subject to administration orders being made, the groups businesses and assets will then be sold to a newly-incorporated group of companies controlled by the holders of the bonds’’.

Staff have been told to continue working and still turn up to work. Newspapers and websites will continue to be published as usual and suppliers will be contacted to re-establish trading relationships.  The benefit pension scheme will not transfer and the Pension Protection Fund will be notified.

Chief Executive, David King states ‘’this has not been an easy decision for the board…is the best available course of action and it is one that offers a chance for a brighter future for our business…our business is profitable with good margins. Our debt has constrained us.’’

The I was launched in 2012, being a sister newspaper to The Independent’s print edition. In 2016, Johnston Press brought the title for £24m. In August, 244,000 copies were circulated – 10% lower than the previous year.

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