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.