Midland newspaper group enters administration
Midland newspaper firm Observer Standard Media Group has gone into administration, staff have been told.
A source said the company made an announcement to staff and the group is believed to be looking for a buyer for its titles.
The company cut 20 per cent of its workforce, including eight people in editorial, in November last year after a drop in advertising revenue.
The Observer Standard Media Group published 20 weekly newspaper titles across the Midlands, most of them free, as well as five periodical magazines and 30 online titles. It was founded by West Midlands businessman Chris Bullivant in 1989 and grew over time to become the UK’s 14th largest newspaper group.
Its newspapers include the Redditch Standard, Solihull Observer and Inside Out magazine among many others. The most recent to be launched was the Nuneaton Observer, which was launched in conjunction with Iliffe News and Media. At the time, Iliffe described Observer Standard as having “considerable knowledge of this particular part of the West Midlands and a proven track record and formula for free newspaper launches”
The company claims to distribute “well over half a million full colour copies of their local newspapers to well over 850,000 regular readers across Warwickshire, Worcestershire, West Midlands and Gloucestershire each and every week” on its website.
But rumours have been spreading that the company had gone into administration. And the source at one of the company’s newspapers said staff had not been given any details, but had been told to carry on as normal while the firm looked for a buyer.
Two years ago, newspaper entrepreneur Bullivant announced he was interested in buying Trinity Mirror’s Midlands titles – the group of newspapers that went on to become BPM Media.
At the time he said he was in “detailed talks” with financial backers to buy the papers, including The Birmingham Post, and The Birmingham Mail.
He was one of a group of investors who expressed an interest in the titles, along with at least three private equity houses.
In the end Trinity Mirror decided to retain the newspapers.
Mr Bullivant, who comes from Birmingham, had launched a free daily paper – the Birmingham Daily News – in the city in the 1980s as a rival to the Birmingham Mail.
The Observer Standard Group is a family-owned business, with chairman Bullivant senior joined by his wife Pat, as deputy chairman, and son Chris junior, who has been managing director since January 2007.
He took over in the position from his mother, after working in a number of different departments of the group.
At the time, he said he would be looking to continue a strategy of organic growth at the company.
The Observer Standard group could not be contacted for comment.
Newspapers published by Observer Standard group include: Alcester Standard, Arden Observer, Bedworth Observer, Bromsgrove Standard, Coventry Observer, Droitwich Standard, Evesham Observer, Kenilworth Observer, Leamington Observer, Lutterworth Observer, Redditch Standard, Rugby Observer, Solihull Observer, Southam Observer, Shirley Observer, Stratford Observer, Warwick Observer and Worcester Standard.
Magazine titles include: Inside Out, Your Wedding, Flavour, First Time Buyer, In Loving Memory.
