Johnston Press rebuffs David Montgomery’s ‘Local World’
Johnston Press, the UK’s largest owner of local newspapers, has rebuffed David Montgomery’s regional news venture ‘Local World’ claiming that its priority is to pay down its debt.
Johnston’s refusal to join the party comes as analysts question whether there is room for Montgomery’s business in the current market, particularly without a commitment of support from any of the main players.
Thus far Northcliffe Media, the fourth largest regional publisher with 84 titles and Illiffe Media, which owns in excess of 30 daily titles are the only backers of the plan.
Johnston Press chief executive Ashley Highfield said: “"I'm focusing on transforming our business and paying our debt down, that is our number one priority," he told MediaGuardian. "I don't want all my or my management's time sucked up in mergers and acquisitions.
"Consolidation is a good thing and I am watching with interest," he said. "If Monty does put it together it breaks the groundwork for consolidation. I've kept our powder dry. It is not something I'm focused on right now but given I'm a believer in consolidation it is not something I'd say no to, it depends on the timing."
Trinity Mirror has also refused to embrace the plan, choosing instead to remain at arm’s length by taking a stake in the business.
The position of Newsquest, the other ‘bif four’ publisher, is unknown.