Consortium comes to Classic 1027 FM’s aid

Classic 1027 FM media release:

Classic 1027 FM, South Africa’s only commercial classical music radio station, has exited business rescue.

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 with a view to maximising the station’s reach on FM and digital platforms and gaining 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 industry regulator ICASA.

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