City AM, the esteemed London-based business newspaper, is facing the imminent possibility of calling in administrators, following an unsuccessful attempt to secure a buyer for the publication.
According to sources from Sky News, the directors of City AM’s parent company are making preparations to enlist the services of BDO, a renowned accountancy firm, to initiate the insolvency process in the forthcoming days.
Throughout the week, executives have been engaged in discussions with potential buyers for the nearly 18-year-old free sheet title. The newspaper has faced significant challenges due to the drastic reduction in advertising revenues, primarily resulting from the sharp decline in commuter footfall amid the COVID-19 pandemic.
Notably, escalating print costs have also placed considerable financial strain on City AM and its competitors within the industry.
Insiders have indicated that a pre-pack sale might be on the horizon, wherein administrators are appointed to a company just before an immediate sale of some of its assets. This prospect could lead to a notice of intention to appoint administrators being issued this week.
City AM, which has been widely distributed at various transport hubs and locations in London and the home counties since 2005, boasts an impressive daily print run of 70,000, with an audited circulation of over 67,000.
The newspaper’s ownership structure is comprised of a 50% stake held by a group of Dutch investors, while Lawson Muncaster, the managing director, and Jens Torpe, the chief executive, each possess 25% stakes.
In early statements this month, Mr. Muncaster expressed, “As London continues to rebound from the pandemic, the time has come to consider the next chapter of City AM’s journey. Positioned as a local paper at the heart of the financial universe, the brand is ideally poised to diversify into new territories and develop fresh revenue streams that capitalize on the evolving media landscape.”
The search for a buyer was initially led by FRP Advisory, a specialist restructuring firm.
City AM asserts that its website draws up to two million monthly unique visitors, with its latest circulation figures only 10,000 units lower than pre-pandemic numbers.
Overseeing the newspaper’s editorial content is Andy Silvester, who joined in September 2019, bringing with him prior experience as a public relations executive at The Sun. Notably, under his guidance, the publication introduced a four-letter acronym to Britain’s business jargon, referring to employees who exclusively worked in the office on Tuesdays, Wednesdays, and Thursdays.
The shifting commuter habits amid the pandemic led City AM to discontinue its Friday edition in January, transforming the publication into a four-days-a-week title.
City AM’s workforce currently comprises just over 40 employees dedicated to editorial and commercial operations.
London-Based Business Newspaper Nears Administration as Buyer Search Falters
City AM, the esteemed London-based business newspaper, is facing the imminent possibility of calling in administrators, following an unsuccessful attempt to secure a buyer for the publication.
According to sources from Sky News, the directors of City AM’s parent company are making preparations to enlist the services of BDO, a renowned accountancy firm, to initiate the insolvency process in the forthcoming days.
Throughout the week, executives have been engaged in discussions with potential buyers for the nearly 18-year-old free sheet title. The newspaper has faced significant challenges due to the drastic reduction in advertising revenues, primarily resulting from the sharp decline in commuter footfall amid the COVID-19 pandemic.
Notably, escalating print costs have also placed considerable financial strain on City AM and its competitors within the industry.
Insiders have indicated that a pre-pack sale might be on the horizon, wherein administrators are appointed to a company just before an immediate sale of some of its assets. This prospect could lead to a notice of intention to appoint administrators being issued this week.
City AM, which has been widely distributed at various transport hubs and locations in London and the home counties since 2005, boasts an impressive daily print run of 70,000, with an audited circulation of over 67,000.
The newspaper’s ownership structure is comprised of a 50% stake held by a group of Dutch investors, while Lawson Muncaster, the managing director, and Jens Torpe, the chief executive, each possess 25% stakes.
In early statements this month, Mr. Muncaster expressed, “As London continues to rebound from the pandemic, the time has come to consider the next chapter of City AM’s journey. Positioned as a local paper at the heart of the financial universe, the brand is ideally poised to diversify into new territories and develop fresh revenue streams that capitalize on the evolving media landscape.”
The search for a buyer was initially led by FRP Advisory, a specialist restructuring firm.
City AM asserts that its website draws up to two million monthly unique visitors, with its latest circulation figures only 10,000 units lower than pre-pandemic numbers.
Overseeing the newspaper’s editorial content is Andy Silvester, who joined in September 2019, bringing with him prior experience as a public relations executive at The Sun. Notably, under his guidance, the publication introduced a four-letter acronym to Britain’s business jargon, referring to employees who exclusively worked in the office on Tuesdays, Wednesdays, and Thursdays.
The shifting commuter habits amid the pandemic led City AM to discontinue its Friday edition in January, transforming the publication into a four-days-a-week title.
City AM’s workforce currently comprises just over 40 employees dedicated to editorial and commercial operations.
Media analyst Douglas McCabe from Enders provided insights earlier this month, stating, “A potential buyer would likely invest because they believe they can leverage the brand as a digital entity. Operating free print media is undoubtedly challenging. The pandemic has considerably reduced City AM’s corporate advertising, along with the commuting patterns in the City over five days, while Brexit has also impacted the newspaper’s corporate advertising.”
As the possibility of insolvency practitioners’ appointment looms, other prominent media entities are also experiencing shifts in ownership. The Daily Telegraph, its Sunday counterpart, and The Spectator are set to be put up for sale by receivers appointed by Lloyds Banking Group last month. The decision was prompted by Lloyds’ dissatisfaction with the Barclay family, the Telegraph’s former owners, over the non-repayment of a £1bn loan.
Last week, the Telegraph and Spectator’s respective parent companies announced the appointment of Mike McTighe, a seasoned boardroom veteran who chairs Openreach, as their chairman.
Bankers will soon be enlisted to oversee an auction of these esteemed media titles.
Media analyst Douglas McCabe from Enders provided insights earlier this month, stating, “A potential buyer would likely invest because they believe they can leverage the brand as a digital entity. Operating free print media is undoubtedly challenging. The pandemic has considerably reduced City AM’s corporate advertising, along with the commuting patterns in the City over five days, while Brexit has also impacted the newspaper’s corporate advertising.”
As the possibility of insolvency practitioners’ appointment looms, other prominent media entities are also experiencing shifts in ownership. The Daily Telegraph, its Sunday counterpart, and The Spectator are set to be put up for sale by receivers appointed by Lloyds Banking Group last month. The decision was prompted by Lloyds’ dissatisfaction with the Barclay family, the Telegraph’s former owners, over the non-repayment of a £1bn loan.
Last week, the Telegraph and Spectator’s respective parent companies announced the appointment of Mike McTighe, a seasoned boardroom veteran who chairs Openreach, as their chairman.
Bankers will soon be enlisted to oversee an auction of these esteemed media titles.