By mid-2004, the newspaper was losing £5 million per year.
A gradual improvement meant that by 2006, circulation was at a nine-year high.
Consequently, production costs could be reduced which, it was said at the time, created openings for more competition.
As a result of controversy around Murdoch's move to Wapping, the plant was effectively having to function under siege from sacked print workers picketing outside. ", and challenging both The Guardian for centre-left readers and The Times as the newspaper of record, The Independent reached a circulation of over 400,000 by 1989.
Brendan Hopkins headed Independent News, Andrew Marr was appointed editor of The Independent, and Rosie Boycott became editor of The Independent on Sunday.
Marr introduced a dramatic if short-lived redesign which won critical favour but was a commercial failure, partly as a result of a limited promotional budget.
Job cuts and financial controls reduced the morale of journalists and the quality of the product.
Ivan Fallon, on the board since 1995 and formerly a key figure at The Sunday Times, replaced Hopkins as head of Independent News & Media in July 2002.
In March 1995, Newspaper Publishing was restructured with a rights issue, splitting the shareholding into O'Reilly's Independent News & Media (43%), MGN (43%), and Prisa (publisher of El País) (12%).
of the company for £30 million, and assumed the company's debt.
The paper was created at a time of a fundamental change in British newspaper publishing.