Local newspaper group Archant shuts printing site as boss steps down
The chief executive of Archant is stepping down as the local newspaper group announced it is shutting its internal printworks, putting jobs at risk.
The publishing firm, which owns titles including the Ham & High and Hackney Gazette, said boss Jeff Henry will step down at the end of September after five years at the business.
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Existing chairman Simon Bax will replace Henry in the newly-created role of executive chairman.
Archant will also close its printing presses in Thorpe and move production to Newsprinters, the printing subsidiary of The Times and The Sun owner News UK.
Archant said the “majority” of the staff at the Thorpe site would be transferred, but some jobs are at risk.
The Norwich-based company, which was founded in 1845 by the Colman’s Mustard family, said a decline in newspaper circulation had forced it to review its printing set-up.
The move to News UK’s Broxbourne printing site will allow the group to continue printing in a more cost-effective way, the company said.
Henry, a former ITV executive, joined Archant in August 2014 and has been charged with tackling the decline in sales and ad revenue that has hit publishers across the newspaper industry.
Earlier this year the government’s Cairncross Review set out recommendations to help boost local news publishers amid growing competition from tech giants and BBC News.
Despite successful attempts at cutting costs, Archant has struggled to counteract waning income over recent years, with like-for-like revenue dropping eight per cent last year to £87.2m.
Tough conditions in the industry have sparked a wave of consolidation, with rival JPI Media putting several of its titles up for sale.
The newspaper group, formerly known as Johnston Press, is currently in talks with Reach over a potential sale of papers such as the i newspaper, The Scotsman and the Yorkshire Post.
Archant, which is the fifth-largest regional newspaper group and publishes pro-EU weekly title The New European, may also be a target for future takeovers after merger talks with Newsquest broke down last year.
The company’s portfolio may appeal to Fleet Street veteran David Montgomerie, whose newly-formed National World venture is slated to launch a media takeover spree.
Archant last week received a boost when it landed a major deal with Google to launch several new digital news outlets. The tie-up, dubbed Project Neon, is thought to involve several million pounds of funding from the tech giant.
Read more: JPI Media in talks to sell i newspaper and regional titles
“I have had five fantastic years as chief executive and have been proud to lead a magnificent group of people at Archant through the acceleration of digital innovation,” Henry said.
“The company has progressed on so many fronts and I am very proud of our transformational achievements during times of great change for the publishing industry.”
Main image credit: Getty