Following a six-week strategic review, which ended with disappointing bids that did not "fully reflect the long-term value of the business", the DMGT board concluded that Northcliffe would be of greater value to its shareholders in a restructured format.
The sale was first announced six months after Northcliffe launched a two-year restructure that it hoped would cut costs by 20m a year by replacing sites at Lincoln, Grimsby and Hull with a single site, Elsham Wold in North Lincolnshire, by the end of 2007.
It was speculated that bidders for Northcliffe included Johnston Press, Trinity Mirror and Newsquest owner, US company Gannett, as well as private equity firms, but none offered the expected price of 1.5bn.
DMGT said it had identified further "cost and revenue opportunities" within Northcliffe, which were already being implemented.
The Elsham Wold project has been on hold since the sale was announced.
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"Well done all involved... great to see the investment to increase the productivity in the same footprint- much more sustainable than popping another one up."
"From 1949 until the late 2000s Remploy had a network of government-subsidised factories that offered employment specifically to disabled people, originally often war veterans or victims of industrial..."
"Does appear an odd decision as with that level of shareholder funds they would be liable for the staff redundancy and cover the insolvency costs. It’s not like they could take the money and dodge..."
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