Johnston Press prepares to go into administration

Johnston Press, which owns newspapers including the i, The Scotsman and The Yorkshire Post, is preparing to enter into administration, the company has confirmed in a statement.

The publisher had recently been looking at ways to refinance £220 million of debt that becomes repayable next June.

At its most recent trading update, Johnston reported a hit to revenues, mostly due to changes in Google and Facebook algorithms.

In a statement yesterday, the publisher said that “following considerable interest in the formal sales process”, it was decided that none of the offers received delivered sufficient value.

“The board has concluded there is no longer any value in the ordinary shares of the company,” the statement added.

Speculation the publisher might be sold had been growing since it announced the strategic review in March 2017.

In August 2018, the company’s share price spiked, surging by as much as 70% 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.”

The company is due to apply for court approval to form a newly incorporated group of companies controlled by creditors.

Johnston Press owns The Scotsman newspaper