The newspaper giant is preparing to end its debt crisis by handing control of the company to its lenders.
The decision comes as the result of a strategic review undertaken by directors in order to find a way to deal with their historic debt and pension obligations.
Subject to the completion of several formal court approvals the company’s businesses and assets will be sold to a newly-Incorporated group of companies controlled by investors who own Johnston Press debt.
The newspapers and websites will continue to be published as usual and suppliers will be contacted in order to re-establish trading relationships.
The news was revealed to employees in an email sent on Friday night.
In the email they said: “This has not been an easy decision.
“However having explored a range of other options, this is the best available course of action and it is one that offers a chance for a brighter future.”
They also insist that the new owners intent to provide money to carry the company forward.
Johnston Press plc is a multimedia company based in Edinburgh, Scotland. Its flagship titles include national newspaper the i, The Scotsman, the Yorkshire Post, the Falkirk Herald, and The News Letter in Belfast. The Falkirk Herald was the then Falkirk-based company’s first acquisition in 1846. Wikipedia
