Sport Media puts its papers up for sale

Daily Sport and Sunday Sport publisher Sport Media Group put itself up for sale today as it runs up against a deadline to sort out its debts.

It broke one of its banking covenants in early January and has until 7 March to sort out another extension or new terms. It said today it was still having "constructive discussions with its bankers" and is "optimistic".

The group, which lost £18.2 million last year, told the stock market: "Following a number of unsolicited approaches, the board is exploring all opportunities to sell the business, in part or whole." That will come as little relief to investors who backed the £50 million takeover of Sport Newspapers from David Sullivan through a placing of shares at 75p, which valued the business at £73 million.

Despite doubling in price to 4.5p today the shares have lost 94% of their value since the takeover. The entire business, which includes not only the two tabloid titles but also a profitable mobile-phone content supplier, is worth less than £5 million.