Classic FM exits business rescue
Classic FM has emerged from business rescue. It was placed there on 30 September 2019 and has undergone a process of extreme cost-cutting and a round of retrenchments. The station’s rescue came after the business rescue practitioner accepted a bid from The Professional Consortium. This has allowed Classic 1027 FM to deal with its creditors and maintain its going-concern status.
The Professional Consortium is a group of media, legal, and business management specialists with experience in commercial radio; its initial focus is on implementing a strategy to stabilise operations. The consortium is presently reviewing strategies that will attract a larger, more-diverse audience with a view to maximising the station’s reach on FM and digital platforms and gaining advertiser confidence.
African Media Entertainment (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.