Newspaper group bought out of administration

Newspaper group Johnston Press, which publishes throughout the East Midlands and is the owner of the Yorkshire Post and 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 kep their jobs.

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

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.”

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.”

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