THG rescued City AM for £1.5m as free newspaper racked up millions in debt

THG rescued City AM from going out of business with a deadline day offer of £1.5m, it has been revealed.
The Manchester-headquartered group was the only bidder to step forward for any part of the London freesheet after a formal sale process was launched in June.
A deal was concluded and announced on July 26 but the price was not revealed at the time.
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However, a new document filed by administrators BDO has outlined exactly how much THG paid for City AM, the story behind the company collapsing into administration and how much it owed to its creditors.
City AM was incorporated in November 2004 and grew to employ almost 40 members of staff.
The business publication had been half-owned by two Dutch private investors, while chief executive Jens Torpe and managing director Lawson Muncaster also owned about a quarter.
City AM is distributed from ab …