Piers Grove has agreed to sell his stake in Junkee to former Nine chairman David Haslingden.
Grove will also leave his role as managing director of the digital youth publication and pass his equity to Haslingden, with whom he had threatened legal action with over a $1.2 million loan.
The sale comes after Crikey revealed how Grove and Haslingden’s efforts to rework and revamp the publication led to staff losses, such as COO Rob Stott, editor-in-chief Gyan Yankovich and head of content Jules LeFevre, and uncertainty about its future.
To add, Grove suffered a stroke in May and while he made a short return two weeks after, he took medical leave and was not in the office for months. Haslingden stepped in and made changes to how the publication, office and finances were run, which impacted staff morale, according to the independent outlet.
The publication also noted Grove’s threat of suing Haslingden over an unpaid $1.2 million loan.
In a joint statement published by SMH, RACAT Group and Grove said: “Junkee was purchased by Scout Publishing, a joint venture between Piers Grove and RACAT Group. Both Mr Grove and RACAT financed the purchase and operations, in the form of loans convertible into equity.”
“The $1.2m was paid by Mr Grove as a convertible loan. Mr Grove has now offered to sell his interests in Scout to RACAT.
“The outcome has been mutually agreed by both parties who are confident of completing this in the next month.”
Junkee is currently being led by editor-in-chief, Alice Griffin, who was appointed in October, alongside head of operations and sales, Niki Jones.
See also: Alice Griffin to take the reins of Junkee as editor-in-chief