Dawson offloads assets to Smiths and Menzies

LONDON - Dawson Holdings has exited the newspaper and magazine distribution business after selling its assets to rivals Smiths News and John Menzies for £2m.

Dawson Holdings: opting out of newspaper and magazine distribution
Dawson Holdings: opting out of newspaper and magazine distribution

The two companies picked up the assets after Dawson Holdings, which has lost key newspaper and magazine contracts in recent months, put Dawson News, its retail distribution unit, which runs subsidiaries Surridge Dawson Limited and Solent SD Limited, into administration.

Dawson News had previously lost contracts with, among others, News International and Telegraph Media Group (TMG).

Smiths News paid £1.5m for its share of assets, while John Menzies bought assets valued at £500,000.

It is expected that about 1,800 of Dawson's staff will transfer to Smiths News under TUPE regulations and the company claimed the deal would prompt a lift in sales of about £250m a year.

John Menzies, which is expected to take on about 700 Dawson staff, said the benefit of its purchase would not have any positive impact on revenues this year, due to start-up costs.

Nigel Freer, chairman of Dawson Holdings, said: "Regrettably, there is no viable alternative for Dawson News other than its administration announced today.  However, our three continuing business carry on trading normally and we have great confidence in their future."

Dawson's remaining businesses are Dawson Books, Dawson Media Direct and Dawson Marketing Services.

Become a member of Campaign from just £51 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk ,plus get exclusive discounts to Campaign events

Become a member

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content