Jobs saved as Dawson goes into administration

DAWSON Holdings said yesterday that it has sold assets from Dawson News &ndash; its collapsed newspaper and magazine distribution business &ndash; to its rivals Smiths News and John Menzies, saving over 2,000 jobs.<br /><br />Dawson said the two subsidiaries which comprised Dawson News, Surridge Dawson and Solent SD, had been placed into administration.<br /><br />&ldquo;Regrettably there is no viable alternative for Dawson News other than its administration announced today,&rdquo; said chairman Nigel Freer.<br /><br />He added that the proceeds from the asset disposals would go to pay creditors of the two firms. Smiths spent &pound;1.5m on Dawson assets, while Menzies paid &pound;500m.<br /><br />Dawson News, which employed 2,450 staff, has lost a string of distribution contracts to Smiths and Menzies in recent months, including the renewal of a major contracts with Daily Mail and General Trust and News International.<br /><br />The contracts, which were due to be phased in, will instead begin with immediate effect. <br /><br />Dawson chairman Nigel Freer said that its three continuing businesses will carry on trading normally.