Highbury magazines go on auction block after MacKenzie departure

The company's troubles provide the opportunity for other publishers to get hold of magazines such as lads monthly Front and special interest titles including Practical Woodworker.

Highbury's dire straits intensified before Christmas when its shares were suspended on December 12 because it was unable to renegotiate its debt payments.

Then executive chairman Kelvin MacKenzie walked away just before Christmas because of the extent of the debt.

MacKenzie had bought 20% of the company to gain control of the board in September and bid to turn Highbury around. As a shareholder, he is likely to receive nothing for his £1.5m investment in the company, Highbury warned in its statement today.

"Shareholders should be aware that, owing to the level of the company's indebtedness and other liabilities, following any sales of the trading activities in the group it is highly unlikely that there will be any value attributable to the equity in the company," it read.

The company had already been forced to sell some magazines and its South African division last year following the collapse of an offer for the company from rival publisher Future in April.

Rich Coles, publishing director, at Highbury House (London), said: "Whilst this is clearly a difficult time, the staff of Highbury remains committed to publishing great magazines for both readers and advertisers and will continue to do so until such time as new owner is found. Until then it's business as usual."

Future pulled its £96.5m offer because the Office of Fair Trading referred the deal to the Competition Commission, and later returned with £30.5m to buy 38 Highbury magazines.

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