Johnston Press has fallen into administration after failing to address debts of £220 million.
The group, which owns titles including the i, the Scotsman and Yorkshire Post put itself up for sale last month but was unable to find a suitable buyer.
David King, Johnston’s chief executive, said: “There were offers for the whole group, as well as for some individual titles.”
“Each approach was examined carefully. Yet none of these offers, or combinations of offers, would have raised enough money to repay the £220 million debt that we are obliged to settle in June 2019, nor did they allow the defined benefit pension scheme to remain attached to the company.”
According to an email sent out to staff from the chief executive, the jobs of the company’s 2,000-plus staff remain safe for the moment.
“Our operations will continue uninterrupted and so it is important that you turn up for work as normal – your employment contract will be transferring to the new company and you will continue to be paid as normal,” King said in the email.
“The newspapers and websites will continue to be published as usual. As I have stressed on several occasions, our business is profitable with good margins. Our debt has constrained us,” he added.
Since administration, the group has revealed a detailed rescue plan. The group plans to file for administration and believes that the firm’s assets will then immediately be bought by its lenders.
Johnston Press said in a statement: “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 group hopes that this transfer will be completed within the next 24 hours.”
Johnston Press was founded in 1767 and has been listed on the London Stock Exchange since 1988.
Shares in the group (LON: JPR) closed -30.56% on Friday’s close.