Troubled newstrade wholesaler Dawson News has fallen into administration.

The wholesaler had lost a string of major contracts to rival newstrade wholesalers Smiths News and Menzies Distribution since May 2008.

Parent company Dawson Holdings said its two subsidiary companies trading as Dawson News - Surridge Dawson and Solent SD - were put into administration this morning.

Its remaining companies Dawson Media Direct, Dawson Books and Dawson Marketing Services, are unaffected.

Smith News has immediately acquired assets of Surridge Dawson Limited for £1.5m including lessee responsibility for 20 of Dawson's depots as well as IT equipment. Around 1,800 of Dawson's distribution and head office staff will also transfer over to Smiths News.

"Regrettably there is no viable alternative for Dawson News other than its administration announced today," said chairman Nigel Freer. "However, our three continuing businesses carry on trading normally and we have great confidence in their future."