Owners of Scotsman: Sale will save jobs
Jobs and newspaper titles at Johnston Press have been saved after the company was bought by creditors.
Newly-formed company JPIMedia announced it had acquired the publisher yesterday after it put itself into administration.
The firm owned titles including the Scotsman and the i newspapers.
As part of the transaction, creditors have agreed to put £35 million into the business and wipe out £135m of debt.
In a statement, JPIMedia said the acquisition “secures jobs and (the) future of its brands and titles”, following the National Union of Journalists demands for “meaningful guarantees” on jobs.
As a result of the sale, an assessment period has been triggered for the employees on the defined-benefit pension scheme.
Union officials previously warned any changes to future payments in line with pension protection fund (PPF) payment rules would be a “terrible blow” to affected staff.
JPIMedia said it will offer a defined contribution pension scheme to all employees.
David King, the publisher’s former chief executive, retains his position at JPIMedia and said the sale would ensure “operations can continue as normal, with employees’ rights maintained, suppliers paid, and newspapers printed”.