Newspaper firm in administration

A Worcestershire-based newspaper group which employs 150 people has gone into administration.

Observer Standard Newspapers, which has its head office in Redditch, blamed the move on a drop in advertising revenues.

John Whitfield, of administrator Grant Thornton, said no redundancies were planned but the situation would be kept "under review".

The firm, which is seeking a buyer, has free newspapers in the West Midlands, Warwickshire and Worcestershire.

Cost-cutting measures

Mr Whitfield said the company went into administration after a series of cost-cutting measures failed to reverse its losses.

He added: "Currently distribution of this week's newspapers will go ahead as usual."

Grant Thornton said the Observer Standard group had an annual turnover of �9m and a combined newspaper readership of 765,000 people.

The group, which employs staff in 10 centres and was founded in 1988, also produces magazines and websites.

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