The following excerpt was sent out from Sky News:
City AM, the London-based business newspaper, is close to calling in administrators after a weeks-long search for a buyer failed to produce a solvent deal.
Sky News has learnt that the directors of the title’s parent company are preparing to appoint BDO, the accountancy firm, to commence an insolvency process in the coming days.
Sources said on Tuesday that executives remained in discussions with prospective buyers of the nearly 18-year-old free sheet title, which saw advertising revenues hit hard by steep declines in commuter footfall as a result of the COVID-19 pandemic.
Soaring print costs have also exerted a toll on the finances of City AM and its rivals.
One insider said a pre-pack sale – in which administrators are appointed to a company prior to an immediate sale of some of its assets – was a strong possibility, with a notice of intention to appoint administrators likely this week.
City AM, which has been given away at hundreds of transport hubs and other locations in London and the home counties since 2005, has a daily print run of 70,000 and an audited circulation of more than 67,000.
The newspaper is 50%-owned by a group of Dutch investors, with 25% stakes held by Lawson Muncaster, managing director, and chief executive Jens Torpe.
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