Well there you go. I wrote back in 2014 about how Johnston Press was a zombie company ‘living’ on borrowed time. It seems this particular zombie has finally succumbed to the self-inflicted blows it started raining down on its own head a couple of decades ago.
I don’t expect sympathy for the effect this will have on my JP pension because I was only there for about six years, but I do feel for those journalists and photographers who have had decades of working for local, regional or national who will have all their pensions in one pot and who may yet lose their jobs.
The story isn’t over yet, which of course means continued instability and unease for staff and pension-holders, as the majority shareholder, Christen Ager-Hanssen, has vowed to unwind the deal Johnston Press has signed with a group of investors.
Johnston Press’ chief executive David King claims “our business is profitable with good margins,” but this misses the point that it was the margins sought in previous decades are partly the cause of JP’s woes now. Not only were they too high, they were sought through asset-stripping as opposed to making high quality publications that readers would be loyal to.
Perhaps what is more troubling is that this is the same business model pursued by other publishers, so is this an isolated case? Were JP management just especially inept?
The Cairncross Review was set up to examine the current state of the UK news publishing industry and to look at how it can be protected and helped to thrive, but I fear by the time the review comes to publish its findings, there won’t be any news publishers left to save.