Fenwick soon found that the narrowness of life in Cromwell and the absence of opportunities were not congenial to his temperament, which lead him in 1871, to sell his part-ownership in the newspaper to his brother William and move to Dunedin. He eventually joined John Mackay (who subsequently became Government printer) as partner in a general printing business based in Princes Street. In 1875 he took up the position of manager of the
Otago Guardian, which was performing poorly. Soon recognising that it was impossible to stem the heavy losses that the newspaper was incurring Fenwick recommended to the directors of the company that they sell both it and the company's weekly paper, the
Southern Mercury. Taking his advice, the publications were soon after sold to
George McCullagh Reed, who had previously been in partnership with
Henry Brett in the
Auckland Star. When deciding to purchase the publications Reed believed that he could redeem the newspaper's fortunes by the sheer force and power of his writing and editing. Against his better judgment, Fenwick was influenced by Reed's conviction, and stayed on in his position and also became a partner. The business however continued to deteriorate and it took little more than a year's experience for Reed by 1877 to come to share Fenwick's view that Dunedin was not able to support two morning newspapers, theirs and the much larger and more prosperous
Otago Daily Times. Fenwick had a brainstorm and staggered Reed when he proposed that they should endeavor to purchase via a reverse takeover the company that owned the
Otago Daily Times and
Otago Witness. Thus by amalgamating their publications with their older-established more successful rivals, they could transform the two concerns into a lucrative business. The directors of their rivals were adamantly opposed and it was necessary for Fenwick and Reed by using W. H. Reynolds as secret negotiator and by raising an offer of £30,000 before they gained control. As soon as Reed and Fenwick assumed control of the
Otago Daily Times and
Otago Witness, the
Otago Guardian and the
Southern Mercury ceased publication. Fenwick subsequently became managing director when the business was floated as a
public company a year later. Reed edited the
Otago Daily Times before departing in 1878 to become New Zealand's immigration agent in Ireland. ==Campaign against sweating==