Johnston Press and News International agree £10 million deal to terminate print contract
Johnston Press has revealed that is has reached an agreement with News International which will see it terminate its printing contract at a cost of £10 million.
The newspaper publisher, which last week released its year-end figures for 2012 that included a decline in advertising revenue of 12.6 per cent, saw News International end its print contract out of JP's Dinnington facilities last year as part of a cost cutting exercise.
Johnston Press has said that as a result of the agreement would lead it to explore ‘new contract printing opportunities’ with immediate effect, and promised that no redundancies would be made following the deal.
It also revealed that the proceeds would be spent on reducing the net-debt at Johnston Press of £319.4 million as well as reducing interest costs.