City AM, London-based Business Newspaper, on the Brink of Administration due to COVID-19 Pandemic and Print Costs
City AM, a London-based business newspaper, is close to administration after a month-long auction to find a buyer failed to produce a solvent deal.
Sky News reports that the directors of the title's parent company are preparing to appoint BDO, an accountancy firm, to commence an insolvency process in the coming days.
City AM has been hit hard by declines in commuter footfall due to the COVID-19 pandemic, which has also affected its advertising revenues.
The newspaper's print costs have also been exerting a toll on its finances.
A pre-pack sale, in which administrators are appointed to a company prior to an immediate sale of some of its assets, is a strong possibility.
City AM is 50% owned by a group of Dutch investors, with 25% stakes held by its managing director and chief executive.
The newspaper's website has up to two million monthly unique visitors, and its latest circulation figure is only 10,000 lower than pre-pandemic figures.
City AM ceased publishing its Friday edition in January, resulting in it becoming a four-days-a-week title.
The newspaper employs just over 40 people across its editorial and commercial operations.
City AM has been hit hard by declines in commuter footfall due to the COVID-19 pandemic, which has also affected its advertising revenues.
The newspaper's print costs have also been exerting a toll on its finances.
A pre-pack sale, in which administrators are appointed to a company prior to an immediate sale of some of its assets, is a strong possibility.
City AM is 50% owned by a group of Dutch investors, with 25% stakes held by its managing director and chief executive.
The newspaper's website has up to two million monthly unique visitors, and its latest circulation figure is only 10,000 lower than pre-pandemic figures.
City AM ceased publishing its Friday edition in January, resulting in it becoming a four-days-a-week title.
The newspaper employs just over 40 people across its editorial and commercial operations.
