Newspaper group bought out of administration

Newspaper group Johnston Press, which publishes throughout the North West and is the owner of the i newspaper, has been bought out of administration in a pre-pack deal.

JPIMedia has bought the company after it put itself up for sale last month. Following the deal, Johnston Press said “most staff” will keep their jobs.

The company owns the Lancashire Post, the Blackpool Gazette and seven other papers in the region.

Johnston Press was under pressure after revealing it had to pay back loans of £220m in June of next year.

The decision was taken to go into administration after no buyers came forward for the business.

Ensall said the deal would bring forward £35m of investment to the business, which will now be taken back into private hands.

The move has been met with criticism from its largest shareholder, Custos Group, which issued a statement saying “Their actions today, ensuring their own jobs are safe, but sacrificing the pensions of their loyal staff, many of whom will no doubt also lose their jobs under the new ownership of a US hedge fund, is simply a disgrace and a vulgar display of the worst elements of capitalism.”

David King, chief executive of JPIMedia, said: “The sale of the business to JPIMedia is an important one for the Johnston Press businesses as it ensures that operations can continue as normal, with employees’ rights maintained, suppliers paid, and newspapers printed.

“We will focus on ensuring the group’s titles continue to publish the high-quality journalism we are known for and which has never been more important.

“I look forward to working with JPIMedia to assess and implement the opportunities available to us in the future, underpinned by a stronger balance sheet.”

John Ensall, director of JPIMedia, 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.

“As part of this transaction we have reduced the level of net debt very significantly and invested £35m to put the business in a far stronger financial position.

“We look forward to working with the management team as they embark on the next chapter in Johnston Press’s story in the media sector, with the resources to support local and national journalism and embrace the digital future.”