Highbury magazines go on auction block after MacKenzie departure
LONDON – Highbury House has put all its magazines up for sale in an effort to pay back the £27m debt it owes.
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.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.
Latest jobs Jobs web feed
- Graphic/Web Designer fishtank 17k to 27k per year GBP, United Kingdom
- ACCOUNT DIRECTOR/SENIOR ACCOUNT DIRECTOR - BTL/SP/Brand Experience - London - £45 - £55k plus bonus Judi Patton £45K-55K plus bonus, London/Greater London
- Digital Brand Manager Nike Europe Competitive + attractive relocation package for foreign hires, Amsterdam
- Head of Media, Marketing & Communications PGA Competitive, Sutton Coldfield, West Midlands
- senior planner > SPORTS BRANDS collectivo Up to £90,000 plus benefits, London
- Senior Account Manager [Shopper Marketing] - Excellent London Agency - c£36k + Fill Recruitment Ltd c£36k + and great benefits, West London
Integrated digital marketing offers huge opportunities to engage, servic...
With UK consumers spending an average of £1,083 a year online, int...
Conversational Mobile Marketing: Engage Customers and Empower Advocates (Expert Reports) External website
The pressure is on for marketers and mobile operators to embrace a strat...
As a nation, the UK is media and technology obsessed with over half of t...
All customers have the potential to become your brand advocates, driving...
A recent Brand Republic survey revealed that 78% of respondents felt und...