View all newsletters
Sign up for our free email newsletters

Fighting for quality news media in the digital age.

  1. Archive content
December 15, 2005updated 22 Nov 2022 5:46pm

Fears for Highbury House

By Press Gazette

Fears were
growing for Front publisher Highbury House this week after shares in
the company were suspended amid the collapse of debt management talks,
followed by the resignation of the last of its long-standing board
members.

The business, which was taken over by former Sun editor
Kelvin MacKenzie in August, called a temporary halt to trading in its
shares on Monday after talks with its creditors fell apart, and
announced the departure of board member David Sebire the following day.

MacKenzie
bought a fifth of Highbury’s shares in August and installed himself as
chairman and chief executive, prompting a reshuffle at board level.
Hopes for the company resurfaced last month when he hired former NME
and Uncut publisher Rich Coles to revive Front and sister title Hotdog.

In
a statement to the stock exchange on Monday, the company said:
“Highbury House announces that discussions with its lenders concerning
a refinancing of its indebtedness and a related issue of equity have
now been terminated. As a consequence, the group has requested that
dealings in its shares be temporarily suspended pending clarification
of its financial position.

“Discussions continue between the
group and its lenders, which continue to be supportive of the group,
and the future viability of the group is dependent on the successful
conclusion of these discussions.”

MacKenzie is reported to have
spent £1.3m on buying shares in Highbury, which is fighting to deal
with £27m in debts, selling the vast majority of its titles to rival
Future for just over £30m.

Shares, which have fallen from 3.4p
since MacKenzie’s arrival in August, were suspended at 0.7p, valuing
his stake at just over £440,000 Discussion on financial messageboards
suggested investors feared the worst, and suspected MacKenzie had tried
and failed to force a deal from lenders by suspending the shares. The
company declined to comment.

Content from our partners
MHP Group's 30 To Watch awards for young journalists open for entries
How PA Media is helping newspapers make the digital transition
Publishing on the open web is broken, how generative AI could help fix it

Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog

Select and enter your email address Weekly insight into the big strategic issues affecting the future of the news industry. Essential reading for media leaders every Thursday. Your morning brew of news about the world of news from Press Gazette and elsewhere in the media. Sent at around 10am UK time. Our weekly does of strategic insight about the future of news media aimed at US readers. A fortnightly update from the front-line of news and advertising. Aimed at marketers and those involved in the advertising industry.
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network