OFT kills the Medway News

It was a decision that was meant to ensure healthy competition in Medway’s local media, but, in an ironic twist, the decision by the OFT to refer a takeover bid has guaranteed the closure of one of Medway’s local titles.

The KM Group last month withdrew it’s bid to buy out seven titles from Kent Regional News & Media, including the ailing Medway News, after the Office of Fair Traiding referred it to a costly review by the Competition Commission, despite prior warnings from both the KM Group, who said that they would pull out, and Ofcom, who foresaw the closure of at least some local newspapers if the deal were not approved.

At the time, Ofcom said “if advertising revenues, circulation figures and profits continue to fall at their current rates, then absent the merger, KMG and KRNM may in the future be forced to close or merge titles or perhaps even cease operating altogether, thereby resulting in a worse outcome for consumers.

“The evidence available to us suggests that the target business and the regional newspaper business of KMG will struggle to achieve profitability in their current form, which might lead them to respond by closing newspaper titles or reducing quality or both.”

Today Ofcom were proved right, with both Medway blogger John Ward and HoldTheFrontPage revealing that parent group Northcliffe Media are looking to close the East Kent Gazette and Medway News, resulting in the loss of more than 35 jobs.

Northcliffe Media announced the decision in a statement released today, saying “Northcliffe Media has announced the potential closure of the Medway News and East Kent Gazette as part of a review of its activities across Kent and the wider South East.

“The restructure is in response to the collapse of the proposed sale of Kent Regional News & Media following referral of the transaction to the Competition Commission by the Office of Fair Trading in October.

“This review has concluded that continuing to publish the Medway News and East Kent Gazette is not financially viable. Subject to consultation with staff both titles are likely to cease publication in early December.”

When the takeover was announced in July, Birmingham and Beyond‘s Founding Editor Alan W Collins wrote “[The News] has, being frank, been in steady decline in content and standards for years. When Northcliffe Media purchased the titles from Trinity Mirror there was a glimmer of hope, with further hope still coming from the restructuring.

“Indeed, and for various reasons, my family has known a few individuals who have worked for the paper and its predecessors in varying roles at various levels. With the exception of one who sadly passed away, the rest are glad they no longer work there.

“If the News needs saving, it is from their publishers – and if the KM Group bid is the only option, then it must be jumped upon, for the sake of the title and the journalists who work there.”

Following Northcliffe Media’s announcement today, he added “it is not an easy time to own a newspaper – local or national – so when an opportunity has been presented to save an ailing title, it must be taken up.

“Whilst I do not mourn the loss of a newspaper whose objectivity and general standards have been in terminal decline, it is a great shame to see so many jobs lost needlessly.

“The Office of Fair Trading’s over-inflated ego has killed off the News, and now stands responsible for the resultant job losses.”