Pensions watchdog drops investigation into publishing giant Johnston Press

The pensions watchdog has dropped its investigation into the sale of newspaper publisher Johnston Press.

The Pensions Regulator (TPR) probe was launched in November after the publishing giant, which owned the I newspaper, The Scotsman and the Yorkshire Post, was sold to JPI Media out of “pre-pack” administration.

Following the sale, the Johnston Press Pension Plan, which had 4,771 members and an estimated buyout deficit of £305m, was dumped into the government’s Pension Protection Fund (PPF).

The investigation focused on whether there was a viable alternative to administration and whether its timing had been “artificially engineered” to avoid a deficit repair contribution (DRC) of £885,000 due just days later.

TPR said it found “no evidence” to suggest that insolvency was avoidable nor that the administration was planned to circumvent payment of the DRC.

“As soon as the administration of Johnston Press was announced in November, we opened an anti-avoidance investigation into the circumstances leading up to deal,” TPR executive director of frontline regulation, Nicola Parish said.

“In February we concluded it would not be reasonable to pursue any further investigation, which could have led to either a Financial Support Direction or Contribution Notice being pursued.

“Should new and relevant evidence be uncovered it may lead us to consider opening an investigation.”

“Where pre-pack insolvencies remove sponsor support from a defined benefit scheme, those involved should expect us to investigate whether our powers can be used, particularly in circumstances where there is an association between the new owners and the previous owners or other stakeholders," she added.