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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

          Monday, June 19, 2000, Vol. 1, No. 30


                       Headlines

C Z E C H    R E P U B L I C

INVESTICNI A POSTOVNI: Czech to Help Stabilize Troubled Bank
PRVNI MISTSKA: Sale in Sight for Troubled Institution
VITKOVICE: Bondholders Threaten Bankruptcy


N E T H E R L A N D S

C&A: To Close All 109 British Stores


U N I T E D   K I N G D O M

APP PRINT: Notice of Creditors Meeting
AQUA PROCESSING: Notice of Creditors Meeting
ARCADIA: C&A Closures Cause Speculation on Who's Next
BON SECOURS: Notice of Creditors Meeting
BSKYB: Moody's Places Baa3 Senior Ratings under Review

CORUS PLC: Blames Strong Pound for Job Losses
DIGGINWELL PLANT: Notice of Creditors Meeting
EUROPEAN TECHNOLOGY: Notice of Creditors Meeting
FLIGHT CO: Notice of Creditors Meeting
H ROSE (TOTTENHAM): Notice of Creditors Meeting

INDEPENDENT ENERGY: Electricity Supplier's Shares in Freefall
JPL LTD: Notice of Creditors Meeting
LICENSED PREMISES: Notice of Creditors Meeting
PANTMAENOG LTD: Notice of Creditors Meeting
QUOTEBACK LTD: Notice of Creditors Meeting

RACE SERVICES: Notice of Creditors Meeting
SOMERFIELD PLC: Struggling Chain Pulling Out of Home Shopping
VISTAGOLD DESIGN: Notice of Creditors Meeting


============================
C Z E C H    R E P U B L I C
============================

INVESTICNI A POSTOVNI: Czech to Help Stabilize Troubled Bank
-------------------------------------------

PRAGUE, Jun 15, 2000 -- (Reuters) The Czech government said on
Wednesday it would step in to stabilize bank IPB a.s. which has
suffered heavy withdrawals following unconfirmed newspaper
reports of significant losses.

The reports have said that a 1999 audit, due out on June 26, will
reveal that IPB, the country's third largest bank 46 percent
owned by a unit of Japan's Nomura, has insufficient reserves.

"Scenarios of stabilization are being worked out... all of them
include certain participation of the state," Finance Minister
Pavel Mertlik told a news conference, which was also attended by
central bank Governor Josef Tosovsky. Merlik declined to
elaborate on scenarios for future development. The government has
previously refused to provide any aid to IPB.

A source close to negotiations between the state, the bank and
Nomura told Reuters on Wednesday that one option was for the
state to buy Nomura's stake for the symbolic amount of one crown,
recapitalize the bank and sell it to a new investor.

The Finance Ministry and the central bank subsequently issued a
joint statement reiterating that the bank would continue to
function and depositors would not lose their money.

Clients took out 1.35 billion crowns ($36 million) in deposits on
Monday alone, as queues formed at branches. IPB spokeswoman
Barbora Tacheci said on Wednesday the withdrawals continued but
she gave no new figures.

IPB shares fell to an all-time low of 72 crowns on Wednesday
before closing at 74, down from Tuesday's close at 81.

The central bank, which performed a separate audit of IPB's
selected loan portfolio transactions, has called for an increase
in equity capital, but has so far taken no regulatory action.

Under Czech law, the central bank may put a bank under forced
administration and suspend shareholders' voting rights if the
owners fail to keep capital adequacy at required levels. Nomura
has pledged to boost capital by up to 20 billion crowns. IPB
plans a rights issue of up to 13.4 billion crowns, but that has
been held up by a minority shareholder suit.


PRVNI MISTSKA: Sale in Sight for Troubled Institution
-------------------------------------------
Prague Business Journal  June 15, 2000

Prague city councilors said they were expecting two serious
offers for municipal bank Prvnˇ M?stsk  Banka on Thursday, June
15, in the latest effort to sell their majority position at the
troubled institution.

The deputy mayor in charge of finances, Jioˇ Paroubek, told the
Prague Business Journal that local officials hoped to make a
decision in the coming months and close the transaction by the
end of the year.

Meanwhile, both Paroubek and the management of the bank
acknowledge that a clean-up is necessary, though they appear to
disagree as to who should pick up the tab.

The city controls a 73.4% stake in Prvnˇ M?stska, which
controlled while Investi?nˇ a Postovnˇ Banka remains a 25%
shareholder. IPB, which is fighting with declining investor
confidence and fears surrounding its solvency, backed away from
initial statements suggesting it would fold the municipal bank
into its current holdings several months ago.

Prvnˇ M?stsk  had K? 6.873 billion in assets after the third
quarter of 1999, making it one of the country's smallest banks,
and has declined requests for year-end 1999 figures.

By inviting in a strategic or financial partner, the city hopes
to help offset a significant portion of unrecoverable loans and
other assets, while strengthening its capital to meet growing
competition. But any likely investor is not likely to accept
debts left behind by the old management, which was replaced in
late 1998.

"City Hall has not decided on cleaning up PMB yet, although I
feel it necessary in order to satisfy the strategic partner's
possible expectations and to support the bank's further
development," said Leos Pytr, the bank's CEO. Pytr does not
regard repaying of the debt by the city the best solution.

Instead, he proposes city guarantees concerning old credits,
giving the bank time to recover at least a major share of those
debts. In 1999, the bank managed to recover 45% of K? 71 million
in bad loans, according to Pytr.

Paroubek has already brought the issue of a clean-up to the City
Council. Whether the city repays the debts itself or selects
another form of solution is still uncertain, he says. "I am
presenting the City Hall with a proposal for some kind of
alternative approach," Paroubek said, declining to provide
details.

One of the interested investors is a consortium that includes an
Austrian bank and a multinational bank headquartered in France,
sources said, while the second is a Czech-Luxembourg financial
group. City officials said they had yet to decide on whether the
sale would include Prague's entire stake, or simply a 34% so-
called blocking minority.

CEO Pytr said the business plan of the bank required long-term
deposits, which it still lacks.

"Of course, we will not refuse new know-how input," Pytr added.
"But long-term deposits supporting . the bank is the item we
highly expect the strategic partner to bring."


VITKOVICE: Bondholders Threaten Bankruptcy
-------------------------------------------
Reuters   June 15, 2000

Pension funds holding bonds of troubled Czech ironworks Vitkovice
have rejected a restructuring plan offered by the company and are
threatening to file for bankruptcy if the bond is not repaid in
full.

The Association of Czech Pension Funds, which represents holders
of some 230 million crowns ($6 million) of the one billion in
issue, said on Wednesday it would not accept a plan to pay 15
percent of the face value of the bonds.

The bond falls due on June 22.

The association's Vice President Jarmila Skvrnova told Reuters
the group would seek a better offer or file a suit for bankruptcy
or enhanced settlement after the maturity date.

Vitkovice, a 67 percent state-owned company employing some 12,000
people, is in serious difficulties after posting a 10 billion
crown loss for the last year.

The restructuring plan, which also includes compensation to other
creditors, has been offered by the company and a state
restructuring agency, which would conduct the debt buyout, but
has yet to be authorised by the courts.

The plan, approved by the cabinet, offers to give bondholders
either 15 percent directly or a convertible bond paying 30
percent of the original amount in about two years.

Small creditors owed up to 10 million crowns would get up to 65
percent of their receivables under the plan, which Skvrnova said
was unfair and would not be accepted.

"Either we will file a bankruptcy petition...or a law suit
disputing (Vitkovice's) settlement plan," she said, adding that
Vitkovice may not be able to submit its settlement plan before
bankruptcy is declared.

However Vitkovice and the state restructuring agency said on
Wednesday the conditions were final and would be officially
offered to creditors and courts soon.

She said the funds may also sue the state for compensation for
mishandling the management of Vitkovice, because the company
might have misled investors by allegedly unfair financial
reporting.

"I think the state did not supervise the issuing conditions of
this bond," she said. "Vitkovice were reported to be a
creditworthy organisation...there was profit of 100 million
crowns (in 1998) and suddenly there is a 10 billion loss."


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

C&A: To Close All 109 British Stores
------------------------------------
LONDON, June 15 (AFP) - The Dutch clothing retailer C&A said on
Thursday that it would close all of its 109 British stores with
the loss of 4,800 jobs.

The middle-of-the-range outfitter has fallen victim to harsh
competition on the British high street, which has seen the
traditional standard bearers of the national wardrobe such as C&A
and Marks & Spencer lose ground to more fashionable upstarts.

C&A last year suffered losses of 250 million pounds (375 million
dollars, 395 million euros) in Britain.


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

APP PRINT: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: A P P Print Services Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 12.00 pm
Meeting date: 21/06/00
Meeting address: 4 Charterhouse Square
Meeting City Code: London EC1M 6EN
Authorised by: A White Director 01/06/00
Last day for proxy:
Proxy address:
Liquidators: S G Taylor
Firm Name: Poppleton & Appleby
Address: 4 Charterhouse Square London EC1M 6EN


AQUA PROCESSING: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: Aqua Processing & Design Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 11.30 am
Meeting date: 21/06/00
Meeting address: 3 Signet Court Swanns Road
Meeting City Code: Cambridge CB5 8LA
Authorised by: J Kay Director
Last day for proxy: 20/06/00
Proxy address: 12 Signet Court Swanns Road Cambridge CB5 8LA
Liquidators: Stephen M Rout
Firm Name: Stephen M Rout & Co
Address: 12 Signet Court Swanns Road Cambridge CB5 8LA


ARCADIA: C&A Closures Cause Speculation on Who's Next
-----------------------------------------------------
The Independent 16 June 2000  

C&A may be the first high-profile casualty of the cut-throat UK
clothing market but it is unlikely to be the last.

Industry experts predict further high-street closures and
restructuring as mid-market stores are relentlessly squeezed
between supermarkets and discounters, such as Matalan and New
Look, and more stylish brands like Gap, Next and French
Connection.

Though the severity of C&A's news came as a shock, warning signs
were apparent earlier in the year. In April, chain store group
Arcardia, which owns Top Shop, Burton and Wallis, announced that
it was closing 400 shops, including the complete shutdown of its
loss-making Principles for Men outlets. Like C&A, Arcadia blamed
falling prices and relentless competition from discounters.

Who will be the next to fall? Few analysts will name names on
record but those most vulnerable include Arcadia, which has a
dozen middle-market formats such as Dorothy Perkins, Miss
Selfridge and Warehouse.

Other underperformers include Bhs, which was recently sold for
?200m and is expected to close some stores. Littlewoods is
another rival marooned in the mid-market, though it is protected
by being part of a wider group that includes mail-order
catalogues and football pools.

Marks & Spencer is not going bust but the sharp fall in profits
could lead to a major retrenchment in the UK where many analysts
say it has too much retail space. Smaller retailers may also give
up the fight as market trends intensify.

There are many reasons for the current retail malaise but the
over-riding problem relates to the basic economics of supply and
demand - too many stores chasing too few sales. Shoppers now
spend less on goods such as clothes and more on services such as
mobile phones, satellite TV subscriptions, gym memberships and
overseas holidays.

As demand remains weak, new competitors have been entering the
high street, further increasing supply. Supermarkets like Tesco
and Asda, with its George label, have grabbed a significant
market share. Discounters such as Matalan, New Look, Primark and
Peacocks have enjoyed huge gains in sales by selling more
fashionable items at rock-bottom prices. Further up market,
stylish new brands like Mango and Zara have also been expanding.

Price deflation, exacerbated by the growth in internet shopping,
has combined with flat demand and high fixed costs, such as shop
rents and labour, to give stores groups little room for
manoeuvre. Major retailers like M&S have cut costs by shifting
production to cheaper overseas manufacturers. Others, such as
Arcadia, have been desperately trying to renegotiate high rent
agreements with landlords. C&A, founded in 1841 by Dutch brothers
Clemens and August Brenninkmeyer, felt it had done all it could.

Richard Hyman, of retail consultants Verdict, says: "Survival
depends on how much certain retailers can cutcosts. If people can
renegotiate leases, cut jobs and sub-let some of space they'll
have more flexibility."


BON SECOURS: Notice of Creditors Meeting
-------------------------------------------
Insolvency Uk

Company Name: Bon Secours Health System Ltd
IA 1986 Section: 48 Creditors
Meeting Time: 12.00 pm
Meeting date: 21/06/00
Meeting address: The Merrion Hotel Wade Lane
Meeting City Code: Leeds LS2 8NH
Authorised by: S C Morris Joint Administrator 31/05/00
Last day for proxy: 20/06/00
Proxy address: Melton Street Euston Square London NW1 2EP
Liquidators:
Firm Name: Grant Thornton
Address: Melton Street Euston Square London NW1 2EP


BSKYB: Moody's Places Baa3 Senior Ratings under Review
------------------------------------------------------
NEW YORK, June 15 - Moody's Investors Service today placed the
Baa3 senior debt rating of British Sky Broadcasting Group (BSkyB)
plc's senior debt under review for possible downgrade.

The rating action follows the announcement that the cost of
BSkyB's rights to show UK Premier League soccer on pay television
will more than double once the company's current contract runs
out at the end of its next financial year.

While Moody's acknowledges that retaining the rights was crucial
to maintain and reinforce BSkyB's leading position in UK pay
television the high price paid in a very competitive bidding
process (GBP 1.11 billion over a three year period) will have a
significant impact on BSkyB's cost base from the financial year
2001/2 onwards.

BSkyB also lost full control of the UK pay television market for
Premier League soccer with cable communications rival NTL winning
the rights to a separately auctioned pay-per-view package.

At the same time, BSkyB's success in signing up new customers
continues to push up its debt levels while the level of spend on
BSkyB's internet and broadband activities remains uncertain.

Against this background, Moody's review will focus on BSkyB's
continuing ability to achieve the sustainable improvement in debt
protection from the financial year 2000/2001 onwards that forms
the basis of the current rating.

The review will also evaluate any near-term implications for
BSkyB's rating from the planned formation of Platco, a new
holding company for principal shareholder News Corporation's
world-wide satellite holdings.

Ratings under review for possible downgrade are: The Baa3 ratings
on the : - $ 300 million 7.30% Gtd. Notes due 2006 - $ 600
million 6.875% Gtd. Notes due 2009 - GBP 100 million 7.75% Gtd.
Notes due 2009 - $ 650 million 8.2% Gtd. Notes due 2009.

British Sky Broadcasting Group, the leading provider of pay
television services in the UK, is based in Isleworth, Middlesex,
England.


CORUS PLC: Blames Strong Pound for Job Losses
-------------------------------------------
BBC News   June 16, 2000

The steel giant Corus is due to make an announcement on the
future of its UK operations on Friday with thousands of jobs cuts
expected.

It is thought the company, formerly British Steel, will confirm
it is cutting some 3,000 jobs nationwide.

More than 1,000 jobs could be lost in South Yorkshire, if
speculation is confirmed that production is moving to Poland.

Corus is expected to blame the strong pound for the job losses,
which has hit demand for UK steel exports.

Rotherham MP Denis Macshane was due to have talks with Corus on
Thursday but they were cancelled at the last minute.
The future of the company's five plants in Wales is also under
discussion.

BBC Wales understands all five - in Llanwern and Port Talbot in
the south Wales and Shotton in the north - will be affected, but
there will be no whole plant closures.

It follows speculation that Llanwern, near Newport, was going to
close - but BBC Wales understands that is not the case.
Last week Sir Ken Jackson, leader of the Amalgamated Engineering
and Electrical Union, asked Trade and Industry Secretary Stephen
Byers for a steel summit to draw up a strategy for the industry.

The union is concerned that the industry is losing ?60m each
month in lost export revenue.

In May, Welsh steel workers lobbied both Parliament and the Welsh
Assembly about their concerns over the future of the industry.

Union representatives from the Llanwern and Port Talbot plants
said that the strong pound had put thousands of jobs at risk.

They were told that the strong pound had cut UK steel demand by
10% in the past year, with millions of pounds being lost every
month in export revenue.


DIGGINWELL PLANT: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: Digginwell Plant & Construction Ltd
IA 1986 Section: 23 Creditors
Meeting Time: 11.00 am
Meeting date: 21/06/00
Meeting address: One Great Cumberland Place
Meeting City Code: London W1H 8LE
Authorised by: S D Swaden Administrator 01/06/00
Last day for proxy: 20/06/00
Proxy address: One Great Cumberland Place London W1H 8LE
Liquidators:
Firm Name: Fisher Curtis
Address: One Great Cumberland Place London W1H 8LE


EUROPEAN TECHNOLOGY: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: European Technology Group Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 11.00 am
Meeting date: 21/06/00
Meeting address: Premier House 112 Station Road
Meeting City Code: Edgware HA8 7TT
Authorised by: D A Fuller Director 18/05/00
Last day for proxy:
Proxy address:
Liquidators: Melvyn L Rose
Firm Name: Elliot Woolfe & Rose
Address: Premier House 112 Station Road Edgware HA8 7TT


FLIGHT CO: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: Flight Co (UK) Ltd - The
IA 1986 Section: 98 Creditors
Meeting Time: 11.00 am
Meeting date: 21/06/00
Meeting address: Plumtree Court
Meeting City Code: London EC4A 4HT
Authorised by: C Rand Director 02/06/00
Last day for proxy: 20/06/00
Proxy address: Plumtree Court London EC4A 4HT
Liquidators:
Firm Name: PricewaterhouseCoopers
Address: Plumtree Court London EC4A 4HT


H ROSE (TOTTENHAM): Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: H Rose (Tottenham) Ltd
IA 1986 Section: 48 Creditors
Meeting Time: 10.00 am
Meeting date: 21/06/00
Meeting address: 20 Farringdon Street
Meeting City Code: London EC4A 4PP
Authorised by: R Heis Joint Administrative Receiver 01/06/00
Last day for proxy: 20/06/00
Proxy address: 20 Farringdon Street London EC4A 4PP
Liquidators: Firm Name: KPMG
Address: 20 Farringdon Street London EC4A 4PP


INDEPENDENT ENERGY: Electricity Supplier's Shares in Freefall
------------------------------
The Times   June 16, 2000

THE future of Independent Energy was in doubt on Wednesday after
shares in the electricity supplier went into freefall. It emerged
that directors had held emergency meetings with its bankers and
financial advisers. Investors, some of whom subscribed to a share
placing in March priced at ?30.95 - and in which directors sold
stakes worth nearly ?20 million - saw shares in the company crash
by 775p, or 62 per cent, to close at 472«p.

John Sulley, chief executive of Independent Energy, said on
Thursday that the group would consider accepting an offer as a
way out of its difficulties.

The UK electricity and gas supplier made the statement after its
shares plunged 62 per cent to 472-1/2p on Wednesday. The shares
recovered 75p to close at 547-1/2p on Thursday.

The shares have tumbled from a high of ?37.50 in March, following
concern that problems over processing customers' bills were
causing cashflow problems.

A number of UK and continental European utilities might be
interested in making an offer for the group, judging by recent
interest in the proposed sale of Norweb's electricity supply
business by United Utilities.

Companies understood to have expressed interest in purchasing
Norweb include National Power, British Energy, Scottish Power,
Scottish and Southern, Electricit, de France, and RWE and Viag of
Germany.  National Power is thought to be the front runner among
these, but a deal has yet to be completed.

Mr Sulley said on Wednesday that the billing difficulties were
taking longer than expected to resolve. He also said that the
group was in discussions to secure a longer-term working capital
facility and had sufficient funds available to last until the
expiry of its revolving credit facility on September 29.

Independent says that billing difficulties affect households and
some small businesses representing 60 per cent of the group's
customers in terms of numbers, but only 10 per cent of turnover
and profits.

The group said this week that the value of delayed bills was
?119m ($178m), slightly higher than the figure of ?112m that it
reported last month.

It has blamed difficulties in getting meter readings from
customers' previous suppliers.

Mr Sulley said the group had expanded its in-house billing
capabilities to transfer small customer accounts from an outside
billing service provider, but that the benefits of this had not
yet taken hold.

Last month, the group reported that it had increased its
borrowing facilities from ?80m to ?165m to cope with fluctuations
in electricity wholesale prices and reduced cash flow due to
billing problems.

Pre-tax profits for the nine months to the end of March rose from
?1.93m to ?21.7m as the group continued to expand in the business
market on the back of price discounting. Turnover rose from ?157m
to ?566.3m.

The group's financial advisers Donaldson Lufkin and Jenrette are
assisting it with its strategic review.


JPL LTD: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: J P L Ltd
Other name: C D Recruitment
IA 1986 Section: 98 Creditors
Meeting Time: 11.15 am
Meeting date: 21/06/00
Meeting address: 76 New Cavendish Street
Meeting City Code: London W1M 7LB
Authorised by: J Lynton Director 24/05/00
Last day for proxy: 20/06/00
Proxy address: 76 New Cavendish Street London W1M 7LB
Liquidators:
Firm Name: Berley
Address: 76 New Cavendish Street London W1M 7LB


LICENSED PREMISES: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: Licensed Premises Sign Co Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 11.30 am
Meeting date: 21/06/00
Meeting address: The Bonnigton Hotel 92 Southampton Row
Meeting City Code: London WC1B 4BH
Authorised by: P E Wood Director 02/06/00
Last day for proxy: 20/06/00
Proxy address: Pride House Rectory Lane Edgware HA8 7LG
Liquidators:
Firm Name: B Mistry & Co
Address: Pride House Rectory Lane Edgware HA8 7LG


PANTMAENOG LTD: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: Pantmaenog Ltd
IA 1986 Section: 48 Creditors
Meeting Time: 10.00 am
Meeting date: 21/06/00
Meeting address: 201 Deansgate
Meeting City Code: Manchester M60 2AT
Authorised by: W K Dawson & J C Reid Joint Administrative
Receivers 01/06/00
Last day for proxy: 20/06/00
Proxy address: 201 Deansgate Manchester M60 2AT
Liquidators:
Firm Name: Deliotte & Touche
Address: 201 Deansgate Manchester M60 2AT


QUOTEBACK LTD: Notice of Creditors Meeting
-------------------------------------------
Insolvency  UK


Company Name: Quoteback Ltd
Other name: Phoenix Squash Club
IA 1986 Section: 98 Creditors
Meeting Time: 02.30 pm
Meeting date: 21/06/00
Meeting address: 1 North Road The Park
Meeting City Code: Nottingham NG7 1AG
Authorised by: G Redmill Director 26/05/00
Last day for proxy:
Proxy address:
Liquidators:
Firm Name: Savilles
Address: 1 North Road The Park Nottingham NG7 1AG


RACE SERVICES: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: Race Services (1984) Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 10.30 am
Meeting date: 21/06/00
Meeting address: Sidcup House 12-18 Station Road
Meeting City Code: Sidcup DA14 7EX
Authorised by: R Russell Director 30/05/00
Last day for proxy: 20/06/00
Proxy address: Sidcup House 12-18 Station Road Sidcup DA15 7EX
Liquidators: A J Clark
Firm Name: Moore Stephens Booth White
Address: Sidcup House 12-18 Station Road Sidcup DA15 7EX


SOMERFIELD PLC: Struggling Chain Pulling Out of Home Shopping
-------------------------------------------------------------
BBC News  June 15, 2000

Struggling supermarket chain Somerfield is pulling out of its 24-
7 home shopping business, with the loss of 226 jobs.

Chairman John von Spreckelsen said: "The hard fact is that 24-7
has not been growing and represents a significant distraction to
management at a time when its focus has to be on the core
Somerfield and Kwik Save business."

He said the company may well take another look at e-commerce food
retailing at some stage in the future and that the decision would
have no impact on Somerfield's main home delivery service which
is set to expand.

The Financial Times said the move was an attempt to stem heavy
losses at the operation and highlighted the costs of developing
remote shopping services through interactive television and the
internet.

"It's a warning to all those rushing onto the Internet that not
every e-commerce business is going to work," said one industry
analyst.

Somerfield, which last month announced a 9.8% fall in fourth
quarter sales, is understood to be losing up to ?1m a month from
the 24-7 home shopping division.

The decision reverses the strategy of ousted boss David Simons.
The business will stop taking orders from Monday 19 June and will
cease trading on 25 June.

The fleet of delivery vans will be used to expand the group's
home delivery service, which will be extended into more stores.

Shares in the company rose slightly on the news which is expected
to prompt a rethink among smaller retailers, who have been
rushing to join the e-commerce revolution.

The Financial Times said most of the country's larger food
retailers offered home shopping services, but few were yet seeing
any profits from them.

Somerfield is currently pre-occupied with another struggling
division, Kwik Save, after it shelved plans to sell it.

None of the offers it received was thought to be satisfactory.
The changes in policy are the first moves made by the new chief
executive, Alan Smith.

He took over Somerfield, Britain's fifth largest supermarket
chain, after David Simons was ousted in March following the poor
performance of the group in the wake of the Kwik Save takeover.

Many analysts thought the ?1.25bn price tag for Kwik Save was too
high.

The poor performance at many outlets has dragged down the parent
company.

Last month the company announced that its sales were down almost
10% in the first three months of this year.

The sales slump was most severe at Kwik Save stores where sales
dropped 16%, while Somerfield sites saw sales down 5.1%.


VISTAGOLD DESIGN: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: Vistagold Design Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 03.00 pm
Meeting date: 21/06/00
Meeting address: The Rhinewood Inn Glazebrook Lane
Meeting City Code: Glazebrook WA3 5BB
Authorised by: J A Hewson Director 31/05/00
Last day for proxy: 20/06/00
Proxy address: 348-350 Lytham Road Blackpool FY4 1DW
Liquidators: Richard I Williamson
Firm Name: Campbell Crossley & Davis
Address: 348-350 Lytham Road Blackpool FY4 1DW



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