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| Publisher of the 'i' newspaper sets out rescue plan | Publisher of the 'i' newspaper sets out rescue plan |
| (35 minutes later) | |
| Johnston Press, publisher of the 'i', The Scotsman and the Yorkshire Post, has detailed a rescue plan aimed at ensuring its survival. | Johnston Press, publisher of the 'i', The Scotsman and the Yorkshire Post, has detailed a rescue plan aimed at ensuring its survival. |
| The newspaper group put itself up for sale last month, but said none of the offers it received were strong enough. | The newspaper group put itself up for sale last month, but said none of the offers it received were strong enough. |
| It now plans to file for administration and says the firm's assets will then immediately be bought by its lenders. | It now plans to file for administration and says the firm's assets will then immediately be bought by its lenders. |
| If the deal is approved by the courts, it will preserve jobs and stabilise the business, Johnston Press said. | If the deal is approved by the courts, it will preserve jobs and stabilise the business, Johnston Press said. |
| But shares in the company are now worthless and will no longer trade on the London Stock Exchange from Monday. | But shares in the company are now worthless and will no longer trade on the London Stock Exchange from Monday. |
| The group 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." | |
| Chief executive David King said in a letter to staff that the move had not been "an easy decision", but it would reduce debt and secure new money for the business. | |
| "We are very confident that this is not the end of the story, but the beginning of a new phase in which we work with the new owners of the group to give shape to a new future," he wrote in a letter to staff. | "We are very confident that this is not the end of the story, but the beginning of a new phase in which we work with the new owners of the group to give shape to a new future," he wrote in a letter to staff. |
| Johnston Press is one of the largest local and regional newspaper organisations in the UK, but has a £220m bond which is due for repayment in June next year. | Johnston Press is one of the largest local and regional newspaper organisations in the UK, but has a £220m bond which is due for repayment in June next year. |
| Mr King said the debt had "constrained us" and that none of the offers they had received for the firm was enough to repay it. | Mr King said the debt had "constrained us" and that none of the offers they had received for the firm was enough to repay it. |
| He apologised to staff with a defined benefit pension scheme - some 250 current employees - warning their future payments would be affected by the rescue deal. | He apologised to staff with a defined benefit pension scheme - some 250 current employees - warning their future payments would be affected by the rescue deal. |
| "The negative effects on the scheme are an inescapable consequence of taking the steps needed to ensure the future of the business," he wrote. | "The negative effects on the scheme are an inescapable consequence of taking the steps needed to ensure the future of the business," he wrote. |
| Mr King said he intended to stay on as chief executive and said the rescue plan was better than "a lengthy and unpredictable administration process". | Mr King said he intended to stay on as chief executive and said the rescue plan was better than "a lengthy and unpredictable administration process". |
| Long history | Long history |
| The publisher has titles covering more than 200 locations from Scotland and Northern Ireland to the south of England. | The publisher has titles covering more than 200 locations from Scotland and Northern Ireland to the south of England. |
| It was founded in Falkirk in 1767, and listed on the London Stock Exchange in 1988, growing through acquisitions. | It was founded in Falkirk in 1767, and listed on the London Stock Exchange in 1988, growing through acquisitions. |
| The i, which was first launched in 2012 and sells for 60p on weekdays and £1 on Saturdays, is seen as the jewel in the crown of its papers. | |
| In its latest results, Johnston Press reported a 10% fall in revenues during the first half of 2018. It swung back to a profit of £6.2m for the six-month period, but this was mainly due to a one-off accounting gain of £8.8m. | In its latest results, Johnston Press reported a 10% fall in revenues during the first half of 2018. It swung back to a profit of £6.2m for the six-month period, but this was mainly due to a one-off accounting gain of £8.8m. |
| In September the i recorded a year-on-year circulation drop of 9% to 242,408 copies. | In September the i recorded a year-on-year circulation drop of 9% to 242,408 copies. |