Johnston Press, which owns newspapers including several titles in Northern Ireland as well as the i and The Scotsman, is preparing to enter into administration, the company has confirmed in a statement.
In Northern Ireland, its titles include the News Letter, Derry Journal and Farming Life.
Ben Lowry, deputy editor of the News Letter, said in a tweet on Friday he was receiving “messages of support and concern”, adding that his newspaper was in good health and profitable. “BNL (Belfast News Letter) will be world’s oldest daily for a while yet!” he said.
Getting messages of support&concern(&in case of some idiots, glee)about News Letter,our wonderful title,est 1737. We're in good health&v profitable. JP,who own us,had debt diffs,which management say will be addressed by new deal. BNL will be world's oldest daily for while yet! pic.twitter.com/1b5SKHPGmK
— Ben Lowry (@BenLowry2) November 16, 2018
The publisher had recently been looking at ways to refinance £220 million (€247 million) of debt that became repayable in June this year.
At its most recent trading update, Johnston reported a hit to revenues, mostly due to changes in Google and Facebook algorithms.
In a statement on Friday, the publisher said “following considerable interest in the formal sales process”, and it was decided that none of the offers received delivered sufficient value.
“The board has concluded that there is no longer any value in the ordinary shares of the company,” the statement added.
Speculation that the publisher might be sold had been growing since it announced the strategic review in March 2017.
All options explored
In August 2018, the company’s share price spiked, surging by as much as 70 per cent in afternoon trading amid rumours that a mystery buyer was quietly snapping up more stock.
But in confirming the move towards administration, the publisher said all options to refinance or restructure the debt had been explored and that “it had not been possible to find a solution acceptable to our financial stakeholders”.
The statement added: “The board has concluded that it is necessary for the company and its principal subsidiaries to be placed into administration.”
Johnston said it has also requested the immediate suspension of shares trading on the London Stock Exchange, with a cancellation of trading due to follow on November 20th.
The company is due to apply for court approval to form a newly-incorporated group of companies controlled by creditors.
“This is the best remaining option available as it will preserve the jobs of the group’s employees and ensure that the group’s businesses will be carried on as normal,” the statement added.
"The group hopes that this transfer will be completed within the next 24 hours." – PA