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MORE than two thousand jobs in the newspaper distribution industry were saved today, when Dawson News sold most of its assets to rivals Smiths News and John Menzies.
Dawson News has been in trouble for some time, as large newspaper groups such as the Daily Mail and News International severed ties with the firm to transfer business to the two main players.
The firm has lost contracts worth several hundred million pounds this year.
Today Dawson News, which employs 2450 people, was placed into administration.
Smiths is paying £1.5 million to pick up 20 of Dawson's depots and some computer equipment. John Menzies is spending £500,000 in a similar deal.
Nearly all staff will be transferred to the new outfit.
Dawson's other businesses - one supplying papers to airlines, one delivering books to universities, and a marketing services firm - will continue as before.
Dawson chairman Nigel Freer said: "Regrettably there is no viable alternative for Dawson News other than its administration. Our three continuing businesses carry on trading normally and we have great confidence in their future."
Despite the strife in the news delivery business, rumours that the Competition Commission may open an investigation persist.
The move from three players to two could spark renewed interest by the watchdog.
