JPIMedia has told staff it is formally up for sale – with all options being considered including the offloading of individual assets or the sale of the company as a whole.
Reach plc confirmed this morning that it is in the “early stages” of discussions to buy part of the regional publisher.
In a statement, it made clear it was interested in acquiring “certain assets of JPIMedia” while adding that there could be “no certainty” that any deal will go through.
JPIMedia declined to comment on Reach’s announcement this morning, but chief executive David King has subsequently confirmed to staff that a formal process “to explore the sale of the business” is now under way.
In an internal message, which has been seen by HTFP, he said: “I can confirm, that as part of exploring its options, the company is now in a formal process to explore the sale of the business. There is no certainty that a sale will result.
“In the meantime, we are taking significant strides forward in accelerating our transition to a digital business.The initial results from the four titles where we have introduced subscriber registration and payment are far exceeding our expectations and further titles will soon follow.
“The redesign of our editorial function in the North-East is already generating significantly enhanced digital engagement whether measured by unique visitors, page views or repeat visits. There is a lot to be proud of and to be encouraged by. So continuing to drive the business forward remains the number one priority for all of us, as it will put us in the best place, whether or not a sale occurs.
“As in the past, I will not be able to provide a running commentary, but when I am able to, I will update you.”
HTFP understands JPIMedia will consider both the sale of the company as a whole and the sale of individual assets.
As well as Reach, Sky News has also previously reported that Belgian publisher Mediahuis, which recently took over Belfast Telegraph owner Independent News and Media, could be among the bidders for the company, together with fellow regional publishers Archant and Newsquest.
Reach already owns the main newsbrands in most of the UK’s major cities, for example the Manchester Evening News, Liverpool Echo, Newcastle Chronicle, Bristol Post and Birmingham Mail.
A deal to acquire part or all of JPIMedia could see a host of other big city titles such as the Leeds-based Yorkshire Post, Sheffield daily The Star, Portsmouth daily The News and Edinburgh dailies The Scotsman and the Evening News added to its portfolio.
JPIMedia was formed last November after its predecessor company Johnston Press went into administration with debts of £220m.
Prior to JPIMedia taking control in a so-called “pre-pack” deal last November, JP had put itself up for sale resulting in six offers for all or part of the business.
One offer of between £140m and £150m was made for the whole of the group, while a separate bid of between £96m and £120m for the group, excluding national daily the i, was also received.
Two separate bids for the i alone, worth £25m and £35m respectively, were also made, one of which is believed to have been from Daily Mail owner DMGT.
An offer of £2.5m was made for Sheffield daily The Star, the Sheffield Telegraph and the Doncaster Free Press, while a bid of £30,000 was also received for the Observer Series and West Sussex Gazette.
At the time, it was considered that none of the offers received, or any combination of them, would result sufficient proceeds to enable the group to repay its debts in full.
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To steal a line from the Bard of Avon: “Once more unto the Reach, dear friends, once more….
Can’t help pinching another quote from that speech, which somehow seems apposite to beleaguered JPI staff: “Stiffen the sinews, summon up the blood….”
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Any staff who haven’t already planned their exit strategy, updated their cv and put the feelers out really should do this now, with everything up for grabs and potential new owners who’ll have their own staff it’s no time to sit and wait to see what will happen, I think we all know.
Think of yourself as no one else will, certainly not the bosses, who in my experience, will only be concerned for their own backs.
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JPI CEO David King said: “We are taking significant strides forward in accelerating our transition to a digital business.”
Does he see a future for print? It doesn’t sound like it. I’d say that our regional newspapers would be better off with Reach, or any other media group, than JPI.
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i think it would be a good thing if JP titles were bought by Reach. Having worked for both companies I can say with confidence Reach titles are miles ahead digitally and, despite what disaffected “old school” journalists may think, the quality of the stories produced has got better. There’s no room for filler online so you have to question the merit of every story – is it worth telling? So unless you think stories are worth doing because we’ve always done them, it’s without a doubt improved the quality of the content for web AND print.
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Reach’s Liverpool Echo had THREE reporters on a story about a McDonald’s that had closed! I think that tells us quite a lot about a once legendary title.
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Minimal information for staff with no updates, I.e. running commentary.
Pensions off loaded and treated like third rate citizens.
Trust left the building along with believing, when the only communication is because of media publicity pressures.
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Utterly depressing.
The indignities and the contempt which these newspapers and their journalists have endured over the past decade by those who own the papers or employ or manage the staff is hard to credit yet shows no signs of ending anytime soon.
Journalists who gave a lifetime of service now face an impoverished retirement thanks to the cynical treatment of their pension scheme.
Journalists who showed loyalty for decades were offered none in return when – no matter how good, or valuable to the paper they might have been – they were shown the door to improve the balance sheet and redress failed boardroom strategies.
Journalists who continue to work for the titles face the most challenging of working conditions, a continuing decline in the quality of their product and the most uncertain of futures.
All that can be done, I suppose, is for those who remain to buckle in and hope death by a thousand cuts will eventually give way to some kind of rebirth.
I don’t see Reach providing that for JPi staff and titles but at least Reach appears to be trying to make a go of things whereas the speculators in charge of JPi clearly can’t get out quickly enough.
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@Ex JP sub
It’s not just JPI or Reach, none of the major regional publishers see a future for print.
With newsprint costs ever rising against free falling copy sales and pitiful advertising revenues they stopped investing in print some time ago seeing digital as the low cost alternative to costly newspaper production.
The fact digital failed to launch to any extent where revenues and online subscriptions can cover costs and fund the business means they’ve lost both markets.
The future of local newspapers is with the new breed of community publisher who are investing in newspapers and print, running efficient businesses and giving the locals the community news they want, just like the bigger boys used to do before the short term panic to reduce costs set in and we’ve all seen the true cost of those cost savings in the huge decline in quality and standards across the industry.
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The point Reach and the City are missing is that big numbers don’t in themselves add up to anything. Having 100m readers paying nothing still adds up to nothing. And yet they pursue it and every few months announce another project in the hope that one will pay big time before the money runs out.
But judging the hash of what they’ve done so far I wouldn’t bank on it.
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Spot on Percy
All the digital viewers in the world does not translate into pound notes and that is the very crux of the problem.
So what?
Show us the money David King!
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Print dying?
Funny that, I go into My WH Smith and see row upon row of magazines, stretching some 50 feet wide and six feet high.
Maybe I am missing something- or is it that some people with an agenda, ie deliberately running down print, are determined to carry their mission through.
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Percy
Correct, the main regional groups have lost their one main usp: their localness, their regionality,by trying to be everything to everyone.
By using generic shared and wholly irrelevant content they’ve turned local people off buying copies yet cannot compete with the main online sites for national and world news and who are successfully monetising online traffic usually in conjunction with strong printed output.
They’re also losing out to the many local and public social media platforms who often break news and photos way ahead of the local paper who are then left to follow up, lift or play catch up.
I can think of examples day to day where something has happened and been posted on FB or Twitter by a member of the public with photos and comments only to see a rehashed version on the local papers own sites some time later by which time its become old news and irrelevant.
Meanwhile their own digital sites are being dumped with top tens, properties worth viewing,ICYMI ( for more clicks) or a national story with a tenuous ‘local’ angle.
It’s plain to see and not hard to understand, having likes and clicks which your sales teams aren’t monetising doesn’t pay the bills. .
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I think yorkshirehack must be kidding. “There’s no room for filler online so you have to question the merit of every story – is it worth telling?”
The Newcastle Chronicle ran a story last week about a man who was upset because his local Asda had run out of tinned sardines. Not all tinned sardines mind, just his favourites. Was it worth telling?
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Whatever happened to Christen Ager-Hanssen? Is he still trying to recover his 25% stake in Johnston Press? Does anyone know?
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@Russ
I agree totally however there will always be those complacent staff at the big groups watching all the cut backs and carnage going on around them thinking ‘ I’m valued here, this doesn’t affect me’
Oh to be that naive when making cuts and saving a few salaries here and there are all that matters.
I’ve seen it happen many times before and sadly the ones who think they’re above it all are usually the ones to take it the worst
Good luck to those good people once again facing uncertain futures.
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Hey ElectricPics, I’m that man who was upset because my local Asda had run out of tinned sardines. Tuna chunks in brine, low fat hummus, and olives for pizza toppings were also absent without leave. How about this splash idea for the business section: Turkish barbershop opening. To get serious for a minute – that’s exactly what I was asked to write up recently. Back in the day we called that an ad feature, now it’s trumpeted to show that the town is weathering the economic downturn. So rejoice!
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The filler on line
More and more of the social media digital content I see on my local daily paper in the east is, as @Canned Laughter says, little more than ad puffs thinly disguised as news. Recently we’ve had;
‘ take a look in the new coffee shop on the xxx’
‘ city kebab shop set to expand’ and ‘mmmm new cookie shop looks to be the best’
yet the company men still try to justify this drivel by claiming their systems are able to give their readers exactly what they want to read and how vital their sites are in providing a comprehensive news service for the area.
If that’s the type of ‘news’ they’re interested in then its probably a good time to wave the white flag and go do something else.
Is it any wonder so few people buy a local paper or take their online offering seriously.
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Perhaps there’s a clue there too as to why advertising revenues are at all time lows, instead of an ad rep selling the business an advert or an ad feat let’s give it to them for nowt!
….why pay for it if you can get a nice editorial feature foc
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