JPI Media in talks to sell i newspaper and regional titles
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The hedge fund owners of the i newspaper and hundreds of regional titles are reportedly in talks to break up the publishing group and sell its assets.
JPI Media, the company formed last year to buy out Johnston Press, has set a deadline of Monday for preliminary offers for papers including The Scotsman and The Yorkshire Post, Sky News reported.
Read more: The i newspaper could be sold as publisher JPI Media considers auctioning assets
It comes despite reassurances from JPI Media boss David King that the company has not opened a “formal sales process”.
The publishing group has sent information to prospective buyers that compares its titles to The New York Times and contains “optimistic” forecasts about the potential for a new owner to transform the business through a subscription-based model, Sky News reported, citing sources.
JPI Media confirmed it has appointed a financial adviser to “better assess the current and future prospects for the business and its titles”, but declined to comment on a potential sale.
“We believe that our industry is undergoing substantial change and we are not immune from the changing trends in news consumption and rise of digital news alongside the decline in print advertising and circulation,” a spokesperson said.
“Consolidation within the regional media industry is necessary, which is why we are actively exploring a number of options open to us.”
Belgian media group Mediahuis, which recently snapped up Irish newspaper group Independent News & Media, could be mulling an offer, while regional publishing rivals Archant and Newsquest are also potential bidders.
Daily Mail and General Trust, which previously tabled a bid for the i, is less interested in making a formal offer, according to the report.
It comes during a challenging time for publishers, with a steady decline in advertising revenue forcing companies to slash costs by cutting staff and even closing titles.
The consortium of hedge funds behind JPI Media, which includes Goldentree Asset Management and Fidelity, has already cut the firm’s debt by £135m to £85m.
They have also implemented a voluntary redundancy programme and an overhaul of the group’s property portfolio.
Read more: Pensions watchdog drops investigation into publishing giant Johnston Press
But the mooted auction may spark concerns about future jobs cuts and the security of employees’ pensions.
In March the pensions watchdog dropped an investigation into the collapse of Johnston Press after it found “no evidence” to suggest the insolvency was avoidable nor that the administration was planned to avoid a deficit repair contribution charge.
Main image credit: Getty