New owner for Stornoway Gazette as lenders takes over parent company assets
17 November 2018
The Stornoway Gazette and its sister newspapers have been sold to a new owner, JPIMedia
JPIMedia was set up by the debt holders to the Johnston Press group -
As part of the rescue deal, lenders have restructured its £220 million debt.
That takes the money owed down to £85 million with the repayment deadline extended from next summer to December 2023.
Additionally, the bondholders have provided £35 million of new money as fresh investment for the business.
JPIMedia said the acquisition safeguards the future of the newspapers.
Johnson Press’s businesses and assets have been sold to JPIMedia, following the court appointment of administrators to the group companies earlier today.
JPIMedia’s said the new owners “recognise the vital role that local and regional media plays in the communities they serve and remain committed to protecting and enhancing the value of the business in the future.”
David King, the former chief executive officer of the group, becomes chief executive of JPIMedia.
Mr King 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-
“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 £35 million 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.”
An assessment period has been triggered for the employees on the defined-
The firm told staff they should “turn up for work as normal” on Monday as the newspapers and websites will continue to be published as usual.
