by business editor Trevor Sturgess

Two newspaper titles face closure with the loss of around 38 jobs.

Northcliffe Media announced that the Medway News and East Kent Gazette, two of its seven titles in the Kent Regional News & Media operation, were likely to close in early December.

The decision follows in the wake of a controversial decision by the Office of Fair Trading (OFT) to refer a KM Group bid for the titles to the Competition Commission.

KMG abandoned the deal, which had been agreed with Northcliffe Media, because of the prohibitive cost of taking its case to the Commission.

In its submission to the OFT, watchdog Ofcom warned that Kent newspapers faced closure if mergers in regional press were blocked.

The fact that this prediction has come true might persuade the Government to change its stance on regional media ownership and force a change of policy.

KRN's other titles Herne Bay and Whitstable Times, Isle of Thanet Gazette, Thanet Times, Folkestone Herald and Dover Express appear to be safe for the time being.

In a statement, Northcliffe Media said: "The restructure is in response to the collapse of the proposed sale of Kent Regional News & Media following referral of the transaction to the Competition Commission by the Office of Fair Trading in October.

"This review has concluded that continuing to publish the Medway News and East Kent Gazette is not financially viable. Subject to consultation with staff both titles are likely to cease publication in early December."