Online retailer and software group THG is in advanced talks to buy free business newspaper City AM out of administration, it has emerged.
Sky News first reported that the London-based publisher is on the brink of entering administration but that talks over a potential rescue were ongoing.
It has now emerged that Manchester-based THG is in negotiations with accountancy firm BDO over a possible pre-pack deal.
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City AM was set up almost 20 years ago and employs around 40 members of staff.
If a deal is agreed, an announcement is expected to be made this week. THG declined to comment.
The business publication is half-owned by two Dutch private investors, while chief executive Jens Torpe and managing director Lawson Muncaster also own about a quarter.
City AM is distributed from about 400 travel hubs and commuter locations, as well as about 1,600 London offices.
The move would be widely seen as a slightly new direction for THG, which primarily runs ecommerce brands and platforms for third parties.
It is understood that any deal would secure editorial independence at City AM and secure the future of its roughly 40-strong workforce.
THG would be expected to deepen relationships between its Ingenuity ecommerce platform business and media buying agencies.
The group also holds content syndication partnerships with firms including Google and Bloomberg.
The potential deal comes after THG sold one of its divisions while Mike Ashley's Frasers Group has snapped up another of its brands.
The group sold THG OnDemand to its management in a move funded by advisory and investment firm Gordon Brothers.
THG said the new owner will continue to be a client of its Ingenuity division, with the provision of technology, operational and digital services.
The group also confirmed that ProBikeKit, a specialist provider of cycling equipment, has been sold to Frasers Group.
The combined consideration payable through both transactions is c.£4m.
