Classic 1027 FM exits Business Rescue
Cape Town - After incurring significant debt as a result of financial challenges spanning many years, Classic 1027 FM was placed in business rescue on 30 September 2019.
Extreme cost-cutting measures were a necessity of the business rescue process, as overheads were crippling the struggling business. Unfortunately, this resulted in a portion of the station's staff being retrenched.
The station's rescue came after the business rescue practitioner accepted a bid from The Professional Consortium. This bid allows Classic 1027 FM to deal with its creditors and maintain its going concern status.
The Professional Consortium is a group of highly skilled media, legal, and business management specialists who have a wealth of experience in commercial radio.
Their initial focus is on implementing a strategy to stabilise operations. The consortium is presently reviewing strategies that will attract a larger- more diverse- audience to maximise the station's reach on FM and digital platforms and gain advertiser confidence.
African Media Entertainment Limited (AME) will retain a small, non-controlling share in Classic 1027 FM, alongside its shareholding in Algoa FM and OFM.
The transaction is conditional on regulatory approval from ICASA.
Compiled by Graye Morkel