JOHNSTON Press, the publisher of The Scotsman, the i newspaper, The Yorkshire Post, is preparing to enter into administration.

The embattled 251-year-old publisher is poised to declare itself insolvent.

It is planning to end its debt crisis by going into liquidation and immediately handing control to its lenders.

It is believed that staff will be transferred to a new company.

The newspapers and websites will continue to be published as usual and suppliers will be contacted in order to re-establish trading relationships.

The firm is said to be due to apply for court approval to appoint administrators and execute a pre-packaged sale to a new holding company controlled by the New York hedge fund GoldenTree Asset Management.

The restructuring specialists AlixPartners would handle the administration, which is scheduled to take place over the weekend to minimize disruption to Johnston Press, the newspaper added.

Sky News also reported that the owner of the Daily Mail newspaper had drawn up a plan to make an offer for the “I” title from Johnston Press, after the struggling regional publisher put itself up for sale.

In a statement, Johnston Press said: "Following considerable interest in the Formal Sale Process, the Board has concluded that none of the offers the Company has received deliver sufficient value and has ended the Formal Sale Process.

"As a result, the Board has concluded that there is no value in the ordinary shares of the Company.

"The Board has resolved that the best remaining option is for the Company and its principal subsidiaries to be placed into administration.

"It is envisaged that, subject to administration orders being made, the Group's businesses and assets will then be sold to a newly-incorporated group of companies controlled by the holders of the Bonds."

The company had said in August it was trying to grapple with tough market conditions affecting the performance of its newspapers and websites, pension obligations and the weight of its debt.

Labour MP for Edinburgh South, Ian Murray, Tweeted: "Very sad that Johnson Press will go into administration.

"Quality journalism is really suffering. There are so many tremendous people that work for their titles. Let’s hope they go on to flourish under new ownership."