DAWSON Holdings said yesterday that it has sold assets from Dawson News – its collapsed newspaper and magazine distribution business – to its rivals Smiths News and John Menzies, saving over 2,000 jobs.
Dawson said the two subsidiaries which comprised Dawson News, Surridge Dawson and Solent SD, had been placed into administration.
“Regrettably there is no viable alternative for Dawson News other than its administration announced today,” said chairman Nigel Freer.
He added that the proceeds from the asset disposals would go to pay creditors of the two firms. Smiths spent £1.5m on Dawson assets, while Menzies paid £500m.
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.
The contracts, which were due to be phased in, will instead begin with immediate effect.
Dawson chairman Nigel Freer said that its three continuing businesses will carry on trading normally.