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      T R O U B L E D   C O M P A N Y   R E P O R T E R     

                         E U R O P E

        Wednesday, October 4, 2000, Vol. 1, No. 105

                          Headlines

B E L G I U M

LERNOUT & HAUSPIE: Sees Negative Cash Flow in Q3


D E N M A R K

REALDANMARK: Danske Buyout for Dkr25.8 Billion; to Cut 2,500 Jobs


F R A N C E

BOURGOIN: Four Candidates to Buy Poultry Group
CREDIT LYONNAIS: Court to Probe Finance Minister


G E R M A N Y

GIGABELL: Saunalahti Rescues Internet Provider from Insolvency


I R E L A N D

BEN SHERMAN: 80 Jobs to Go as Shirt Factory Shuts


I T A L Y

ENIRISORSE: Goes for Liquidation


N E T H E R L A N D S

CORUS: Posts an Operating Loss of 96 Million Pounds


N O R W A Y

AKER FONDS: Insolvent for the Third Time in Three Months


R U S S I A

JSC CHELYBINSK: Schedules Creditors Meeting for October 11
SBS-AGRO: Creditors Slam Over Debt Deal
VOLGA: Signs Debt Restructuring Agreement of $60 Million


U N I T E D   K I N G D O M

A V SHENTON:  Liquidation Proceedings
ARTHUR HOGG:  Liquidation Proceedings
ATLANTIC MARINE:  Liquidation Proceedings
BASS INTER:  Liquidation Proceedings
BOXMAN.COM: Emergency Cash Call

CATFORD STADIUM:  Liquidation Proceedings
CLICKMANGO:  Founders of Dotcom Seek to Sell Remaining Assets
CLIMBMASTER LTD:  Liquidation Proceedings
CORNFIELD & ALDRIDGE:  Liquidation Proceedings
DERWENT HOSPITAL:  Liquidation Proceedings

FANARCH PROPERTIES:  Liquidation Proceedings
GRA & WHITE:  Liquidation Proceedings
GRA PROMOTIONS:  Liquidation Proceedings
HAMPSHIRE SERVICES:  Liquidation Proceedings
INTERNATIONAL CLEARING: Day Trading Firm Shut Down

MG ROVER: Seeks Supplier Payment Overhaul
MOSS BROS: Reports First-Half Pre-Tax Loss of 16.2 Million Pounds
MURRAY JOHNSTONE: Put Up for Sale, Shortlist Set
RAILCARE ENGINEERING: Babcock to Sell Stakes in Engineering Group
SKYEPHARMA: Reports Pre-Tax Loss of 11.4 Million Pounds
WORLDSPORT.COM: London Office Closes; Remaining 50 Jobs Gone


=============
B E L G I U M
=============

LERNOUT & HAUSPIE: Sees Negative Cash Flow in Q3
------------------------------------------------
Belgian speech technology company Lernout & Hauspie expects to
have negative cash flow on an operating basis in the third-
quarter, as well as posting an operating loss, a top executive
said. "The company from an operating perspective will have
negative cash flow in the quarter," Allan Forsey, senior vice
president of finance and strategic planning, told Reuters in a
telephone interview. "By virtue of having negative earnings
before goodwill, there is an expectation there will be negative
cash flow."  Earlier, on a conference call with reporters and
analysts, Chief Executive Officer John Duerden said the company
would have a "cash loss" in the third quarter, as well as posting
an operating loss.

Speaking to Reuters, Forsey clarified that when he responded
"right" on the conference call when asked if the company's
quarterly interest charges were about $5-$6 million, he was
merely acknowledging the question, not commenting whether the
figure was correct. He declined to detail the interest charges.
Forsey also declined to comment directly if there were
discussions with the company's banks to restructure the debt. "We
have no immediate plans, or will not disclose any immediate plans
to restructure debt," he said. Forsey also declined to comment
whether the company would consider bringing in new capital to
reduce its debt. He did note the shelf registration filed in
August for a share offering designed to raise up to $250 million
at a price of $33.125 a share was under review. "Obviously with
the SEC investigation, that shelf registration is being
reviewed," he said.


=============
D E N M A R K
=============

REALDANMARK: Danske Buyout for Dkr25.8 Billion; to Cut 2,500 Jobs
-----------------------------------------------------------------
Danske Bank, Denmark's largest, is to take over its rival
RealDanmark in an all-share deal that values RealDanmark at
Dkr25.8bn ($3bn), creating one of the largest banks in the Nordic
region with total assets of Dkr1,314bn. The combined group, which
will be called Danske Bank. Taking over RealDanmark, the third
largest bank in Denmark, also gives Danske Bank greater capital
strength for further expansion.

The deal will generate cost synergies of Dkr2.2bn, partly by
cutting 2,500 jobs. However some analysts said that the new
Danske Bank would still need to look for a merger partner as
Nordic banks consolidate further. The deal also gives Danske Bank
access to RealDanmark's mortgage finance business. Danske Bank
expects to make a provision of Dkr 2.5bn before taxes to cover
costs associated with restructuring which is likely to include
the closure of up to 150 of the combined group's 500 branches.

Danske Bank shareholders will hold 68 percent of the new group.
Before the takeover, Danske Bank will first carry out a 10 for 1
share split. RealDanmark shareholders will then be able to
exchange one RealDanmark share for 4.11 Danske Bank shares. The
deal has already been recommended by shareholders representing 70
percent of the share capital of RealDanmark.

After the all-share transaction, which is dependant on regulatory
approval from the Danish FSA, RealDanmark's business will be
integrated into Danske Bank's organization and the new group will
keep two main Danish brands Danske Bank and BG Bank.


===========
F R A N C E
===========

BOURGOIN: Four Candidates to Buy Poultry Group
----------------------------------------------
Le Monde & World Reporter noted this week that four new
candidates to buy French poultry group Bourgoin have made
themselves known to the Sens courts. The four candidates are an
executive from Farmstead, the Janze farmers' association,
VolFrance and Dutch group Plusfood. Five other candidates have
already submitted their offers for a partial or total acquisition
of the group, which was declared insolvent at the end of August.


CREDIT LYONNAIS: Court to Probe Finance Minister
------------------------------------------------
Financial Times reported yesterday that the investigation into
the Credit Lyonnais scandal has taken on a new dimension as
magistrates have set in motion a rarely used process to
investigate top politicians, including a minister in the current
government. In an unusual move, judges investigating the
circumstances that led Lyonnais to accumulate losses of more than
FFr100bn (E15bn, $13.4bn) a decade ago requested that a Court of
Justice of the Republic (CJR) be convened to investigate the
roles of two former finance ministers who were in office when the
Lyonnais scandal erupted.

According to Financial Times the two are Michel Sapin, the
Socialist finance minister in 1992-1993 and now junior minister
of the civil service, and Edmond Alphandery, who held the post
from 1993 to 1995. Mr Sapin's predecessor from 1988 to 1992 was
Pierre Beregevoy, who later became prime minister before
committing suicide in May 1993, as the Lyonnais scandal was
gathering pace.

Lyonnais had to be rescued with an estimated FFr100bn or more of
taxpayers' money after suffering huge losses as a result of a
spending spree in the late 1980s and early 1990s. Earlier this
year, the judges put Mr Trichet under formal investigation for
his alleged role in the Lyonnais saga. Mr Trichet headed the
finance ministry's treasury division from 1987 to 1993. As such,
he was responsible for supervising state-owned banks, including
Lyonnais, and can therefore be held responsible for any illegal
activities by the bank. The CJR is the only court that can
investigate and prosecute members of the government for alleged
crimes or improprieties while in office, FT said.


=============
G E R M A N Y
=============

GIGABELL: Saunalahti Rescues Internet Provider from Insolvency
--------------------------------------------------------------
Finnish Internet service provider Saunalahti Oyj rescued troubled
German peer Gigabell from insolvency as it bought a 56 percent
stake in the German ISP for an undisclosed sum. Gigabell, which
has been struggling to avoid becoming the Neuer Markt's first
bankruptcy, said the agreement would take effect once a planned
restructuring had been completed. Saunalahti said it was
considering using both cash and shares to fund the deal and
expected to return the indebted Gigabell to profit within six
months of the deal closing. "Our requirement for this deal to go
through is that there is a significant reduction in (Gigabell's)
debt," Saunalahti Deputy Managing Director Ilpo Kuokkanen told
Reuters.

Kuokkanen said the German company had tried to build too large an
infrastructure in relation to its operations. "We are going to
concentrate on services, customers, products and sales which have
been overlooked by Gigabell," he said. Gigabell's shares more
than doubled in value on a firming Neuer Markt, and by 0731 GMT
were trading at 5.40 euros. Saunalahti stock was 1.37 percent
firmer at 8.90 euros. If the deal is concluded, Gigabell Chief
Executive Daniel David will sell his stake to the Finnish
company.


=============
I R E L A N D
=============

BEN SHERMAN: 80 Jobs to Go as Shirt Factory Shuts
-------------------------------------------------
Ananova reported earlier this week that the Northern Ireland
textile industry has suffered another blow with news that the Ben
Sherman shirt factory is to close with the loss of 80 jobs. The
news comes 24 hours after Ulster company Desmonds announced it
was closing its clothing factory in Enniskillen, Co. Fermanagh
with the loss of 130 jobs. Both firms blamed competition from low
cost imports from the Far East and High Street price pressures.

Announcing the closure, Ben Sherman operations director Johnny
Choda said: "Unfortunately, the company has no alternative but to
close the plant." He said efforts to reduce costs and improve
efficiency within the factory had proved unsuccessful. The
factory will close at the end of October. The company employs a
further 170 staff at its head office and worldwide distribution
centre in Lurgan, Co Armagh. Ananova reports those jobs are not
affected.


=========
I T A L Y
=========

ENIRISORSE: Goes for Liquidation
---------------------------------
La Repubblica & World Reporter reported that EniRisorse, the
division of Italian energy group Eni which is currently being
liquidated, has sold Italian company Pertusola Sud, which is in
the process of being liquidated, to Zincocalabra, the Italian
company whose reference shareholder is Cogefin, the Italian
company of Milanese businessman Felice Colombo. Pertusola owns
the industrial site of the Italian town of Crotone, where a new
plan is to be built to produce 180,000 tons a year of
electrolytic zinc and alloys.


=====================
N E T H E R L A N D S
=====================

CORUS: Posts an Operating Loss of 96 Million Pounds
---------------------------------------------------
Reuters reported earlier this week that the concerns about Corus'
loss-making activities pushed shares in the Anglo-Dutch steel-
maker close to a record low. Overshadowing positive sentiment
about a merger between Sweden's Avesta Sheffield, majority-owned
by Corus and Finland's Outokumpu, the shares slipped 4.44 percent
to 0.86 euros, near an all time session low of 0.80 euros. "Corus
is integrating Avesta in the cooperation unit with Outokumpu, but
I think some dealers would prefer Corus to invest in its loss
making activities," said Daan Muusers, an analyst at Friesland
Bank Securities. Earlier this month the company posted an
operating loss of 96 million pounds for the nine months to July.

ING Barings, which rates Corus "hold", said Corus appeared to
have missed an opportunity to increase its exposure to the
stainless steel segment outside Britain, although the company
raised its 2001 earnings per share forecast as a result of the
merger. Metals and mining group Outokumpu Oyj said it would buy
Avesta Sheffield AB in a billion-dollar deal to create the
world's second largest stainless steel producer.


===========
N O R W A Y
===========

AKER FONDS: Insolvent for the Third Time in Three Months
--------------------------------------------------------
Dagens Naeringsliv & World Reporter reported earlier this week
that Aker Fonds, the Norwegian investment fund, has been declared
insolvent for the third time in just three months. SCH Active
Investments, the Swedish venture capital company, has summoned
the Norwegian company to a Norwegian county court with a demand
for NKr10.7m. Activities in Aker Fonds have been at a standstill
since June this year, following de-listing from the stock
exchange and law suits, amongst other things. The lawyer who
represents SCH Active Investments, Birger Nilsen, said that the
company sold shares with Aker Fonds acting as broker, but was
never paid.


===========
R U S S I A
===========

JSC CHELYBINSK: Schedules Creditors Meeting for October 11
----------------------------------------------------------
Skrin Issuer noted earlier this week that JSC Chelybinsk
scheduled a creditors meeting for October 11. The main question
on the agenda is which application creditors will appeal to
Chelyab Arbitrage Court: either to start bankruptcy proceedings
or conclude an amicable agreement.


SBS-AGRO: Creditors Slam Over Debt Deal
-----------------------------------
The Moscow Times reported earlier this week that a group of
private clients of former banking giant SBS-Agro demanded a
review of the terms of a deal drafted under the auspices of the
state's Agency for Restructuring Credit Organizations, or ARKO,
to settle the bank's debts. "You are afraid of tackling the
dealings of the tycoons and are therefore trying to make a
settlement at the expense of the small people," said Yury
Parfilov, head of SBS-Agro's private creditors committee at a
meeting with ARKO's officials.

SBS-Agro's debts to households total 6.15 billion rubles (about
$1 billion at the time when the bank sank in 1998). ARKO, which
took over the bank at the end of 1999, repaid all creditors who
were owed less than 20,000 rubles ($700), representing 12 percent
of the value of the claims. Others were offered a restructuring
scheme that includes an up front payment in cash and issuance of
bonds with a maturity of three to 20 years.

The government did not act on restructuring the bank for more
than a year, giving managers plenty of time to remove its assets.
The bank was handed to ARKO at the end of last year. "Now ARKO is
forcing us to sign an amicable agreement, but this agreement,
first and foremost, smacks of a robbery under the cover of the
government," says a letter that was forwarded by Parfilov to the
Central Bank. Challenging ARKO's authority, the creditors' group
started a web site at www.sbs-agro.nm.ru, urging creditors to
vote against the agreement drafted by the agency, which is to be
discussed by the creditors on Nov. 16.

The letter posted on the Internet calls for an alternative
creditors' meeting to be held Nov. 1. Individual clients are
mostly concerned with a loan worth $750 million issued to
Agroprombank on Dec. 30, 1998, in defiance of a Central Bank
ruling in September that year that prohibited SBS-Agro from
making any banking transactions. The loan issued to Agroprombank
left SBS-Agro but did not arrive in Agroprombank, which was
declared bankrupt several months later. Separately, the group
also claims that ARKO should seize Alexander House, named after
the former head of SBS-Agro, Alexander Smolensky, The Moscow
Times said.


VOLGA: Signs Debt Restructuring Agreement of $60 Million
----------------------------------------------------------
The Moscow Times reported earlier this week that Volga, a
Balakhinskiy pulp-and-paper factory, signed a debt restructuring
agreement with the International Finance Corporation and a number
of German banks for $60 million. Pursuant the agreement the debt
will be repaid in $2.5 million installments every three months;
the total debt repayment period is 6 years.

The $75 million credit was granted by the International Finance
Corporation (IFC) and a number of German banks in 1995 with a
maturity period of 5 years; the credit was allocated for
refurbishment of the "Volga's" equipment. Due to the credit and
its own internal funds, in 1995-1997 the factory managed to
implement a $198 million investment, and succeeded in repaying
$15 million of the total sum of credit. After signing the
restructuring agreement this year the factory's balance was
"cleared" of $30 million in liabilities, which made it possible
for the factory to attract additional capital for the technical
refurbishment. Prior to the agreement IFC protested against
similar operations.


===========================
U N I T E D   K I N G D O M
===========================

A V SHENTON:  Liquidation Proceedings
-------------------------------------
Company Name:   A V Shenton Ltd
Company No:   342198
Com. Business:   Building Contractors/Joinery Manu
Appointed on:   05/09/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   James P Martin  IPno: 8316  David R Wilton  5708
Firm Name:   PricewaterhouseCoopers
Address:   8 Ridge House  Ridge House Drive
City Postcode:   Stoke-on-Trent  ST1 5SJ


ARTHUR HOGG:  Liquidation Proceedings
-------------------------------------
Company Name:   Arthur Hogg Ltd
Company No:   0239104
Com. Business:   Dormant
Appointed on:   05/09/00
Type:   Members
Appointed by:   Members
Liquidators:   Richaes J Hassall  IPno: 5751    
Firm Name:   KPMG
Address:   PO Box 730  20 Farringdon Street
City Postcode:   London  EC4A 4PP


ATLANTIC MARINE:  Liquidation Proceedings
-----------------------------------------
Company Name:   Atlantic Marine Ltd
Company No:   2582032
Com. Business:   Marine Engineers/Hauliers
Appointed on:   05/09/00
Type:   Creditors
Appointed by:   Members
Liquidators:   Gordon S Goldie  IPno: 5799    
Firm Name:   Tait Walker
Address:   Bulman House  Regent Centre  Gosforth
City Postcode:   Newcastle-u-Tyne  NE3 3LS


BASS INTER:  Liquidation Proceedings
------------------------------------
Company Name:   Bass Inter Brewers Overseas Hold Ltd
Previous Name:   Fastsupply Ltd
Company No:   3144814
Com. Business:   Investment Holding Co
Appointed on:   05/09/00
Type:   Members
Appointed by:   Members
Liquidators:   James R Smith  IPno: 8031  N J Dargan  8024
Firm Name:   Deloitte & Touche
Address:   Stonecutter Court  1 Stonecutter Street
City Postcode:   London  EC4A 4TR


BOXMAN.COM: Emergency Cash Call
-------------------------------
Boxman.com, one of Europe's three largest online music retailers,
announced plans to raise about $43 million by issuing additional
stock. Failure to get the placement completed this month could
send the company into bankruptcy by year's end, Securities Data
Publishing reported yesterday.


CATFORD STADIUM:  Liquidation Proceedings
-----------------------------------------
Company Name:   Catford Stadium Ltd
Company No:   322565
Com. Business:   Dormant
Appointed on:   05/09/00
Type:   Members
Appointed by:   Members
Liquidators:   Richaes J Hassall  IPno: 5751    
Firm Name:   KPMG
Address:   PO Box 730  20 Farringdon Street
City Postcode:   London  EC4A 4PP


CLICKMANGO:  Founders of Dotcom Seek to Sell Remaining Assets
-------------------------------------------------------------
Business Day reported yesterday that Clickmango, the natural
healthcare products e-tailer, is being liquidated and the
company's founders are retaining their sense of humour while
seeking to squeeze as much money as possible from the remaining
assets. Their East End office is largely empty of staff.

In true dotcom fashion the founders, Robert Norton and Toby
Rowland, have been in touch with some of the vulture dotcoms Web
sites that help offload assets of ailing dotcoms. So far the duo
are unimpressed by the service. Far more interest has been
generated by a note on their now defunct Web site about what is
for sale. Clickmango ideally wants to sell the whole office --
computers, servers and comfy brown leather sofas as a package --
to another start-up. What is proving harder to sell is its
inflatable boardroom.


CLIMBMASTER LTD:  Liquidation Proceedings
-----------------------------------------
Company Name:   Climbmaster Ltd
Company No:   2448069
Com. Business:   Dormant
Appointed on:   05/09/00
Type:   Members
Appointed by:   Members
Liquidators:   Richaes J Hassall  IPno: 5751    
Firm Name:   KPMG
Address:   PO Box 730  20 Farringdon Street
City Postcode:   London  EC4A 4PP


CORNFIELD & ALDRIDGE:  Liquidation Proceedings
----------------------------------------------
Company Name:   CornField & Aldridge Ltd
Company No:   626868
Com. Business:   Dormant
Appointed on:   05/09/00
Type:   Members
Appointed by:   Members
Liquidators:   Timothy F Corfield  IPno: 1071    
Firm Name:   Griffin & King
Address:   26-28 Goodall Street
City Postcode:   Walsall  WS1 1QL


DERWENT HOSPITAL:  Liquidation Proceedings
------------------------------------------
Company Name:   Derwent Hospital (Bournemouth) Ltd
Company No:   3047721
Com. Business:   Private Hospital
Appointed on:   05/09/00
Type:   Creditors
Appointed by:   Creditors
Liquidators:   Duncan K Swift  IPno: 8063    
Firm Name:   Grant Thornton
Address:   31 Carlton Crescent
City Postcode:   Southampton  SO15 2EW


FANARCH PROPERTIES:  Liquidation Proceedings
--------------------------------------------
Company Name:   Fanarch Properties Ltd
Company No:   2044926
Com. Business:   Property Investment
Appointed on:   05/09/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Peter Gotham  IPno: 4117    
Firm Name:   Begbies Traynor
Address:   The Old Exchange  234 Southchurch Road
City Postcode:   Southend-on-Sea  SS1 2EG


GRA & WHITE:  Liquidation Proceedings
-------------------------------------
Company Name:   GRA & White City (Manchester) Asso Ltd
Company No:   247341
Com. Business:   Dormant
Appointed on:   05/09/00
Type:   Members
Appointed by:   Members
Liquidators:   Richaes J Hassall  IPno: 5751    
Firm Name:   KPMG
Address:   PO Box 730  20 Farringdon Street
City Postcode:   London  EC4A 4PP


GRA PROMOTIONS:  Liquidation Proceedings
----------------------------------------
Company Name:   GRA Promotions Ltd
Company No:   340908
Com. Business:   Dormant
Appointed on:   05/09/00
Type:   Members
Appointed by:   Members
Liquidators:   Richaes J Hassall  IPno: 5751    
Firm Name:   KPMG
Address:   PO Box 730  20 Farringdon Street
City Postcode:   London  EC4A 4PP


HAMPSHIRE SERVICES:  Liquidation Proceedings
--------------------------------------------
Company Name:   Hampshire Services Ltd
Company No:   2687257
Com. Business:   Drainage Engineers
Appointed on:   05/09/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Robert J Thompson  IPno: 8306    
Firm Name:   Rendell Thompson
Address:   30 Reading Road South
City Postcode:   Fleet  GU13 9QL


INTERNATIONAL CLEARING: Day Trading Firm Shut Down
--------------------------------------------------
Money Unlimited reported earlier this week that the city
regulators shut down one of the first "day trading" companies to
be set up in Britain, prompting fears of hefty losses for scores
of professional traders and investors. The securities and futures
authority said it had issued an intervention order against
International Clearing Associates (ICA) halting its business
after establishing that it had "insufficient regulatory capital"
to continue. Most of ICA's business is thought to have come from
many of the former traders on the London International Financial
Futures and Options exchange, who needed new ways to deal after
the exchange shut its trading floor and adopted an electronic
system.

ICA had told the SFA that it was seeking additional capital from
existing shareholders and new investors. But, the SFA said, ICA
had "failed to obtain additional capital and SFA believes that
there is no reasonable prospect of the firm having sufficient
capital to satisfy requirements for the immediate future". Its
intervention order instructed ICA to cease trading.


MG ROVER: Seeks Supplier Payment Overhaul
-----------------------------------------
MG Rover, the loss-making British carmaker, has alarmed suppliers
by seeking an overhaul of its payment terms to help cut costs and
protect its cash flow, the Financial Times reported yesterday.
The company, formerly part of Germany's BMW group, has told many
suppliers it wants to move from 60-day payment terms to 90 days.

At the same time, it emerged that production schedules for Rover
cars including the flagship 75 model have been scaled back. Some
large component manufacturers are vowing to resist Rover's
payment proposals, fearing a possible credit squeeze at the
carmaker. Others have warned that smaller suppliers, particularly
those highly dependent on Rover could face financial difficulties
if the proposals are forced through.

The chief executive of one leading supplier, who declined to be
named, said component manufacturers were "desperately trying to
find alternative customers" to offset the new arrangements. "This
is going to push suppliers into demanding payments from Rover up
front; we are refusing to give them extended credit," he added.
MG Rover, sold by BMW to a consortium of Midlands businessmen
this year for a nominal 10 pounds, denied the proposals signaled
cash management problems. Rover lost 720m pounds last year.


MOSS BROS: Reports First-Half Pre-Tax Loss of 16.2 Million Pounds
-----------------------------------------------------------------
Financial Times reported yesterday that Moss Bros, the UK men's
wear retailer, reported a first-half pre-tax loss of 16.2m pounds
($23.9m), which included a 12m-pound provision for restructuring.
An operating loss of 4.2m pounds in the six months to July 29,
against a 1.4m-pound profit last time, was broadly in line with
analysts' expectations, following two profit warnings earlier
this year and harsh trading conditions in the retail sector.

As part of its ongoing restructuring program that has seen the
closure of loss-making stores, the group also announced that it
was merging The Savoy Taylors Guild, Blazer and The Suit Company
into a new shop format called Code. Rowland Gee, managing
director, said that the group was determined to be radical with
restructuring. He also revealed that the company was also
considering selling women's wear. "Code will be a vehicle that
will not only include men's wear but could include women's wear,"
Mr Gee said.

Moss Bros also announced the appointment of Julian Kilmartin,
former men's wear product director at Next, as group buying and
merchandising director. Mr Kilmartin will join the board on
October 3. Turnover was up 7.5 per cent to 71.6m pounds (?66.6).
But the group saw its margins fall 4.3 percent due to heavy
discounting in the 17 shops the group has disposed of and the
addition of the Brand Centre, which generates lower gross profit
margins. A further 13 store closures are planned.


MURRAY JOHNSTONE: Put Up for Sale, Shortlist Set
------------------------------------------------
Murray Johnstone, the UK fund manager put up for sale last month
by United Asset Management, has reached a final shortlist of
three bidders, and could announce the winner as early as next
week. It is understood the three finalists are Aberdeen Asset
Management, an Italian bank and a U.S. financial institution,
Financial Times noted yesterday.

Allied Irish Banks and Singer & Friedlander, the investment bank,
are thought to have been ruled out last week after failing to
submit high enough bids. Royal London, the Edinburgh pensions and
life group, is also thought to have submitted too low an offer.
Edinburgh Fund Managers was ruled out at a much earlier stage.
Murray Johnstone, which originally hoped to raise 100m pounds
from the sale, is now likely to fetch between 130m and 150m
pounds following strong interest in the under performing asset
manager. The firm's first-round bids attracted more than 12
responses, with more than half of the bidding companies coming
from overseas.

Murray Johnstone would be particularly attractive to overseas
bidders that are keen to build up a distribution platform in the
UK, but have found valuations of fund managers prohibitive.
However, Aberdeen Asset Management is also thought to be a strong
contender. It has pledged to keep the majority of Murray
Johnstone's staff, as well as the business's headquarters in
Glasgow, where most of its investment management is undertaken,
if it wins.

Murray Johnstone has 4.2bn pounds of funds under management and
employs more than 50 investment managers in the UK, where it has
six offices. The business was put up for sale in August after
United Asset Management was bought by Old Mutual, the South
African financial services company. Last month, Murray Johnstone
lost two of its most high-profile investment managers. John
Johnstone and Andy Gray both quit the firm abruptly to join Legg
Mason Investors.


RAILCARE ENGINEERING: Babcock to Sell Stakes in Engineering Group
-----------------------------------------------------------------
Babcock International has sold its stake in the loss-making rail
maintenance business Railcare. Babcock will get 5.7 million
pounds for selling its 60 percent stake to DaimlerChrysler Rail
Systems. The other 40 percent is held by Siemens. Proceeds will
be used to expand remaining businesses. In the year to last March
Railcare lost 3.4 million pounds before tax and goodwill, with
Backcock's share 2 million pounds. Railcare is valued at 17.2
million pounds minus Siemen's share at 7.8 million pounds so
Babcock will be taking a 4 million-pound exceptional hit,
Citywire reported yesterday.


SKYEPHARMA: Reports Pre-Tax Loss of 11.4 Million Pounds
-------------------------------------------------------
Financial Times noted yesterday that SkyePharma, the UK drug
delivery group, has received approval to market Solarase, a
treatment for pre-cancerous skin lesions, in the US. The group
made the announcement as it drifted further into the red,
reporting pre-tax loss of 11.4m pounds ($16.7m) for the six
months to June 30 (6.4m pounds last time).

Analysts had expected SkyePharma to break even in the second half
of this year until it ran into problems manufacturing DepoCyt. Mr
Ashton said SkyePharma was in advanced negotiations with a
potential US marketing partner for Solarase and expected to
announce a deal in the near future. In March the group signed a
European marketing agreement on the drug with Bioglan, the UK
drug development company.

The company hopes to find partners for two of these products a
sustained release morphine injection that lasts for two days, and
a local anaesthetic by the end of the year. The group has
appointed Tamar Howson the former head of product licensing
strategy at SmithKline Beecham as a non-executive director. The
SB high-flyer was forced out as part of the merger with Glaxo. Mr
Ashton said her extensive industry contacts, particularly in the
US, would bring new business to the company.


WORLDSPORT.COM: London Office Closes; Remaining 50 Jobs Gone
------------------------------------------------------------
Another dotcom crashed out of existence last week when
Worldsport.com closed its London office and sacked the remaining
50 staff, the Express on Sunday reported yesterday. Launched by
tax exile Alan Callan, who lives in Monte Carlo, it had been
trying to find new backers but ran out of time. Receiver Leonard
Curtis was forced to close the business.

Stephen Swaden for the receiver said: "Although we did secure
funds to pay the remain staff for three months we were told that
no investors could be found to take the business forward." Swaden
said the income stream the company had was inadequate when large
amounts were being spent on staff. The site had made some high-
profile appointments, including Mike Miller, former controller of
sport at the BBC. Brendon Parsons, the managing editor of the
business, who also lost his job, stressed that Worldsport's
parent company in Ireland still retained the Internet rights to
the Monte Carlo-based General Association of International Sports
Federations.



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