THG's takeover of City AM was a surprise, given Matt Molding's history of tirades against the media. Photo: Kevin Holt
The crisis forced City AM to stop printing in 2020. Although the newspaper is now back in circulation, it has been hit by rising newsprint prices and a move to work from home, and is therefore no longer printed on Fridays.
While revenues rose to last year, the company lost £6.1m and its debts rose to £2.5m.
Earlier this year, the bosses reached an agreement in principle with an investor to receive additional funding in exchange for a 25% stake. stake in the business.
But talks fell through and City AM ended up in a £1.5 million pre-package administration deal with THG, which owns brands like Lookfantastic and Myprotein.
Documents show City AM's finances were so tight that the company was unable to pay salaries to key suppliers in July as well.
Fears that key employees would leave prompted THG to transfer £92,500 to cover payments.
THG's purchase of City AM has raised eyebrows in the industry, given Mr Molding's previous tirades against both the media and the City of London.
Sources close to the business insist that City AM will remain editorially independent while highlighting THG's potential commercial opportunities.
Clearly, City AM is now hiring about a dozen new positions, adding nearly a third of its staff, and spending money on new equipment.< /p>
THG also plans to use its digital expertise to launch a new app for this game next month.
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