---

     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

          Friday, October 27, 2000, Vol. 1, No. 122

                         Headlines

B E L G I U M

SABENA: Goes for Restructuring Operations


C Z E C H   R E P U B L I C

CZECH RAILWAYS:  US to Fund Restructuring Study
LET KUNOVICE: Court Declares Bankruptcy
KRALOVOPOLSKA: To Meet Following Bankruptcy Cancellation


F R A N C E

SCOP UNION: Courts Put Co-operative into Receivership


H U N G A R Y

MALEV: APV Offers Initial 10 Percent Stake for Cash Injection
MALEV: General Manager to Quit


I R E L A N D

KAVANAGH: Faces Financial Crisis
TRANSAER:  Two African Firms Seize Three Aircraft


L A T V I A

BALTKOM GSM:  Up for Sale US$277 Million; Includes Liabilities


N E T H E R L A N D S

DE KONINKLIJKE: Schelde Subsidiary Declared Insolvent


P O L A N D

DAEWOO-FSO: Calls Production Halt Starting Monday
TELEFONIA LOKALNA: KGHM Polish Copper Enterprise Buys


R O M A N I A

FONDUL NATIONAL:  Investors in Collapsed Fund Stage Protest


S L O V A K I A  (S L O V A K   R E P U B L I C)

BIOTIKA: Posts Net Loss of SKK 10.6 Million


S W E D E N

BOXMAN: E-commerce Company Fails, Dismisses 120 Jobs


U N I T E D   K I N G D O M

B & D GARAGE: Liquidation Proceedings
CAMPION INTERIORS: Liquidation Proceedings
CRANE ASSOCIATES: Liquidation Proceedings
DAI-ICHI LIFE: Liquidation Proceedings
EDGE PROPERTIES: Liquidation Proceedings

FINELIST:  Up for Sale, Founder Rejects Claims of Cover-up
GLOBAL ASSET: Liquidation Proceedings
GLOBAL FINANCIAL: Liquidation Proceedings
HARRISONS MOTOR: Liquidation Proceedings
INDIGO VISION:  Posts Pre-Tax Loss of 3.12 Million Pounds

J C HATT: Kitchen Company Goes Into Receivership
KPMG (CBA): Liquidation Proceedings
KPMG (NBA): Liquidation Proceedings
OLIVER GROUP: Benson to Buy Struggling Shoe Shops
OLIVER GROUP: New Owner Plans to Rename Shoes Chain

WOOLWICH: Court Approves Barclays' Purchase
ZEN RESEARCH:  Posts $13.96 Million Loss


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

SABENA: Goes for Restructuring Operations
-----------------------------------------
Belgium's Sabena Airlines has unveiled plans for restructuring
the carrier, which will include job cuts and reduced services, M2
Communications reported last week. The company's president,
Christoph Muller, stated that "drastic and urgent recovery
measures are necessary to continue the development of the Sabena
Group." Sabena said that it is likely to post an operating loss
of about USD123m for 2000 and has also indicated that 2001 does
not look any better, according to the Associated Press. Sabena
Airlines will cut between 400 and 500 jobs, as well as
discontinue unprofitable flights from Brussels to Johannesburg,
South Africa and Newark, New Jersey. Sabena is controlled by
SAirGroup, the parent company of Swissair.


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

CZECH RAILWAYS:  US to Fund Restructuring Study
-----------------------------------------------
In a ceremony last Wednesday, the U.S. Trade and Development
Agency awarded a $144,405 grant to Czech Railways for technical
assistance related to its restructuring efforts, Prague Business
Journal noted yesterday. Transportation and Communications
Minister Jaromir Schling said the money would fund a study to
determine "which way to go in Czech Railways' restructuring
process. It is another step that leads from state organization to
the future of [Czech Railways] as a prosperous business company,"
said the minister.

The research company, to be chosen by the U.S. government, will
help the railways plan its privatization, implement the
Transformation of Czech Railways law, and ensure compliance with
EU railway directives. The adviser will also help establish a
restructuring framework that will facilitate access to
international funding and foreign direct investment. The first
part of the project should be finished by the end of 2001; a
second grant worth $250,000 will follow. This second grant will
fund an effort to attract potential investors in Czech Railways.


LET KUNOVICE: Court Declares Bankruptcy
---------------------------------------
A Brno court declared LET Kunovice bankrupt, ruling that the
troubled aircraft producer lacked the funds to meet obligations
and pay employees, Prague Business Journal noted yesterday.
Bankruptcy administrator Zlatava Davidova says it is now
important to keep the firm operating and find a new owner to
replace U.S.-based Ayres Corp. The decision was welcomed by Pan
Pacific Airways, LET employees, Konsolidacni Banka and the
Aircraft Research and Testing Institute, which all filed
bankruptcy petitions against LET.


KRALOVOPOLSKA: To Meet Following Bankruptcy Cancellation
--------------------------------------------------------
Tuesday's annual general meeting will discuss the situation of
engineering company Kralovopolska (KP) after the recent
cancellation of bankruptcy imposed on the company in February,
Czech News Agency reported earlier this week. The bankruptcy,
declared by the Regional Commercial Court in Brno, was lifted by
the High Court in Olomouc, North Moravia, in early September.
Owing to the new verdict, the former management led by board
chairman and chief executive Milan Rada returned to the company.
But the managers could heave a sigh of relief only after
entrepreneur Jan Pivec withdrew his bankruptcy petition which
would have sent the company into serious problems again.

According to Czech News Agency, Pivec holding a claim on KP worth
more than Kc1.4 million, was already behind the Brno court's
ruling from February. The management said the bankruptcy was
unexpected, as the company was undergoing financial
restructuring, launched last year, had drafted a debt-clearance
process and contracted orders and production finances. Besides,
KP was getting ready for an entry of a strategic partner, but the
bankruptcy marred the entire reviving process. In June, 1999, KP
filed a proposal for a court settlement with creditors within the
restructuring process, and a general meeting in December, 1999,
approved a Kc1.209 billion capital cut to Kc1.21 million,
designed to cover part of accumulated losses worth Kc4.25
billion.

Subsequently, KP raised its capital by Kc2.253 billion to swap a
debt to state-held Konsolidacni banka (KoB) for equity. But these
events had not been entered in the Company Register by the time
the bankruptcy was imposed, and KoB's owner KRAS, a subsidiary of
the National Property Fund (FNM), had to register its claim
within the bankruptcy proceedings as one of the total of 362
claims worth Kc3.974 billion. The FNM considered the imposition
of bankruptcy improper, as it had taken a number of steps to
revitalize the company and claimed that the management had found
a new program and a road to a survival. The declaration of
bankruptcy also affected KP's subsidiaries: a total of 400 staff
had to leave the company which, moreover, lost its largest
claims. Also the government is ready to help the traditional
producer survive. The FinMin is planning to submit to the Cabinet
a proposal for a guarantee worth up to Kc550 million for the
coverage of KP's claims within the court settlement, Czech News
Agency said.


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

SCOP UNION: Courts Put Co-operative into Receivership
-----------------------------------------------------
French co-operative production work company (Scop) Union Travaux,
based at Aulnay-sous-Bois, in France, whose employees had
paralyzed traffic in the north Paris on Wednesday, was placed in
receivership on Monday by the Bobigny courts. Scop Union Travaux,
one of the largest construction co-operatives in France, which
groups nine companies and employs around 700 people, stopped
payments on October 13. The group's losses are close to FFr109m.
Six of the nine companies have stopped payments and have been
placed under administrator control for an initial period of
observation, which will end on 23 February 2001, La Tribune &
World Reporter noted yesterday.


=============
H U N G A R Y
=============

MALEV: APV Offers Initial 10 Percent Stake for Cash Injection
-------------------------------------------------------------
APV, the Hungarian state privatization and holding company, has
indicated that it will be offering a 10 percent stake in Malev,
the national airline, in a one-round sale through a closed tender
to investors from the aviation industry, M2 Communications noted
last week. The tender will require bidders to make an offer to
raise Malev's registered equity via a cash injection and also
asks bidders to make offers as to which air alliance the carrier
should join and with what conditions, according to Dow Jones
News. The winning bidder will receive a private placement of
shares. APV has indicated that Air France, KLM Royal Dutch
Airlines, SAS of Denmark and Swissair of Switzerland have signed
a secrecy agreement regarding Malev's business data.


MALEV: General Manager to Quit
------------------------------
Budapest Business Journal reports that Ferenc Kovacs, general
manager of Malev Hungarian Airlines Rt, will leave his post by
mutual consent. The company's Board of Directors will soon be
convened to discuss the issue. Kovacs, who has been working at
Malev since 1977, was elected general manager by a special
general meeting on Oct. 2, 1999. The State Privatization and
Holding Co. (APV Rt), which holds 97 percent of Malev shares,
approved the company's privatization strategy last week.


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

KAVANAGH: Faces Financial Crisis
--------------------------------
Doras noted yesterday that 40 jobs are to be lost at the Kavanagh
feed mill in Maynooth, County Kildare because of financial
difficulties at the company. The workers have been served with
redundancy notices, and have met with management to hear details
of the problems at the firm. The company processes animal feed
stuff.


TRANSAER:  Two African Firms Seize Three Aircraft
-------------------------------------------------
Transaer, the Dublin-based airline that last week went into
liquidation, has had three of its aircraft seized by Libyan Arab
Airlines and Egyptair, Doras noted yesterday. Transaer's former
management says that the Libyan airline is holding two Airbus
A320 aircraft in Tripoli, each worth around USD30-40, while the
Egyptian group holds an A300, worth about USD20m. Aer Rianta has
been holding two further aircraft leased by Transaer since last
Friday.

It is understood that the firm owes Aer Rianta 200,000 pounds in
unpaid landing fees. Transaer said the owners of the aircraft
have been in contact with lawyers representing the Transaer
customers who seized the aircraft. Meanwhile, early estimates
suggest that TranAer owes creditors more than $4.5m.


===========
L A T V I A
===========

BALTKOM GSM:  Up for Sale US$277 Million; Includes Liabilities
---------------------------------------------------------------
BNS & Euromoney reported yesterday that the sale of shares in
Latvia's Baltkom GSM mobile telecommunications operator to Tele2,
a subsidiary of Sweden's NetCom.Last year Baltkom GSM was 2
million lats (USD 3.22 mln) in the red. Parex bank's corporate
finances unit acted as the consultant in the Baltkom GSM sale,
advising the company's largest shareholder, Alina private company
and its owner.

The Latvian Transportation Ministry Oct. 20 approved the sale of
100 percent of shares in Baltkom GSM capital to Tele2, a
subsidiary of NetCom. Tele2 bought Baltkom GSM for some 277
million USD, inclusive of the Latvian mobile telephone operator's
liabilities in the amount of 53 million US dollars. NetCom AB was
established in Sweden in 1993 and is one of the largest
Scandinavian telecommunication service companies.

The services by Tele2 AB are currently used by over 9 million
clients in 18 world countries. Baltcom GSM is the second largest
mobile telecommunication operator in Latvia and has some 90,000
subscribers. Alina, the private company of Peteris Smidre, was
the largest shareholder in Baltkom GSM and other shareholders
include Metromedia International Group, Western Wireless
International Corporation.


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

DE KONINKLIJKE: Schelde Subsidiary Declared Insolvent
------------------------------------------------------
De Koninklijke Schelde, the Dutch ship building group, has been
saved from liquidation by Dutch ship building company Damen, due
to intervention by Dutch economic affairs minister Annemarie
Jorritsma and the Dutch lower house, Het Financieele Dagblad &
World Reporter reported last week.

However, shortly before this transaction, management of De
Schelde filed for suspension of payment for its full subsidiary
Schelde Industrial Engineers & Contractors (SEC). The suspension
of payment was transferred into a liquidation. Sources say that a
financial restructuring started in the Schelde group at the cost
of the creditors of subsidiary SEC. SEC went into suspension of
payment six months after the presentation and approval of the
annual report and shortly after that, the company went into
liquidation.


===========
P O L A N D
===========

DAEWOO-FSO: Calls Production Halt Starting Monday
-------------------------------------------------
Next Monday Daewoo-FSO, which has already cut back production in
its Lublin and Nysa plants, will stop production at its Zeran
facility due to sharply declining new auto sales in Poland.
Warsaw Business Journal noted yesterday that the Labor unions are
demanding nationalization and threaten to strike. Daewoo-FSO
board representatives consider the idea absurd and refuse to
comment. Previously patient subcontractors are now demanding to
be paid on time and warn they will stop providing production
materials if deadlines are not met.

Furthermore, production will have to cease if the car dealer's
debts are not paid on time. The Treasury Ministry will meet with
the Daewoo Motor Poland board next week to discuss the company's
failure to fulfill its investment agreement. Economy deputy-
minister Edward Nowak, who is to fly to Korea to hold talks with
the Korean government, company officials, and debtors, says that
Daewoo has very good investment terms and should bear
responsibility for the entire company, not merely for its Korean
part, Warsaw Business Journal said.


TELEFONIA LOKALNA: KGHM Polish Copper Enterprise Buys
-----------------------------------------------------
Polish Press Ag. noted yesterday that Poland's KGHM Polish Copper
enterprise, owner of a 50-percent share of the Telefonia Lokalna
mobile phone company, will pay 36.4 million USD for the remaining
Telefonia shares under an agreement signed with their current
holder, the Polish Power Grid Company (PSE SA). The deal will
give KGHM total control over Telefonia Lokalna. Telefonia
spokesmen said today that the purchase would be finalized only
upon permission from the communications minister.


=============
R O M A N I A
=============

FONDUL NATIONAL:  Investors in Collapsed Fund Stage Protest
-----------------------------------------------------------
Reuters noted yesterday that some 2,000 angry investors in a
collapsed Romanian unit trust protested outside the government
headquarters and briefly blocked traffic in central Bucharest on
Wednesday, demanding the return of their money. The protesters
shouted, brushing with police ringing the area. There were no
reports of injuries or arrests. Some 220,000 people put the
equivalent of USD 220 million in Fondul National de Investitii
(FNI), and investors have staged repeated protests since the fund
ceased payments in May. They are demanding the return of the
money they invested plus USD 110 million in promised returns on
their capital.

Last week, the government sent a bill to parliament offering FNI
investors partial compensation, but without resorting to public
money. The assembly has returned the bill to the government
saying the proposed sum, the equivalent of USD 20 million, was
inadequate compensation for the investors' losses.


================================================
S L O V A K I A  (S L O V A K   R E P U B L I C)
================================================

BIOTIKA: Posts Net Loss of SKK 10.6 Million
-------------------------------------------
Slovak penicillin producer Biotika cut its net loss from last
year to just SKK 10.593 million (USD 202,000) for the first
three-quarters of 2000, the Bratislava Stock Exchange said on
Wednesday. Reuters noted yesterday that Biotika ended last year
SKK 196.6 million in the red, after a loss of SKK 173 million in
1998. Biotika produces antibiotics and other pharmaceutical
products. The company's share is listed on the Bratislava Stock
Exchange. Last time it traded was on September 6, at SKK 352. The
main shareholders in Biotika are domestic G.V.Pharma a.s. with
42.4 percent, Slovak commercial bank VUB with 22.7 percent and
Moorgate Securities Ltd. with 7.0 percent.


===========
S W E D E N
===========

BOXMAN: E-commerce Company Fails, Dismisses 120 Jobs
----------------------------------------------------
M2 Communications noted that a last attempt to save Swedish e-
commerce company Boxman from bankruptcy has failed. The Swedish
business newspaper Dagens Industri reports that no buyer was
willing to take over the company, which during its last phase was
losing SEK15-30m per month. All of the company's 120 employees
have been dismissed. Boxman sold CDs, games and films over the
Internet.


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

B & D GARAGE: Liquidation Proceedings
--------------------------------------
Company Name: B & D Garage Ltd
Company No: IR
Appointed on: 26/09/00
Type: Members
Appointed by: Members
Liquidators: James O'Brien IPno:
Firm Name: James O'Brien & Co
Address: Faraday Court Rockboro Avenue Old Blackrock Road
City Postcode: Cork


CAMPION INTERIORS: Liquidation Proceedings
-------------------------------------------
Company Name: Campion Interiors Ltd
Company No: IR
Appointed on: 26/09/00
Type: Members
Appointed by: Creditors
Liquidators: James Stafford IPno:
Firm Name: Friel Stafford
Address: 13 Fitzwilliam Square
City Postcode: Dublin 2


CRANE ASSOCIATES: Liquidation Proceedings
------------------------------------------
Company Name: Crane Associates Tech Services Ltd
Company No: 2749342
Com. Business: Aircraft Technical Consultants
Appointed on: 26/09/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Mark T Getliffe IPno: 8892
Firm Name: Cooper Lancaster Brewers
Address: 14 Wood Street
City Postcode: Bolton BL1 1DZ


DAI-ICHI LIFE: Liquidation Proceedings
---------------------------------------
Company Name: Dai-ichi Life Insuran Agency Euro Ltd
Previous Name: Dai-ichi Seimel Services Europe Ltd
Company No: 2419850
Com. Business: Life Assurance
Appointed on: 26/09/00
Type: Members
Appointed by: Members
Liquidators: David J Pallen IPno: 5317
Firm Name: Ernst & Young
Address: Rolls House 7 Rolls Building Fetter Lane
City Postcode: London EC4A 1NH


EDGE PROPERTIES: Liquidation Proceedings
-----------------------------------------
Company Name: Edge Properties Developments Ltd
Previous Name: Weldon Leigh Ltd
Company No: 1357485
Com. Business: Property Investments
Appointed on: 26/09/00
Type: Members
Appointed by: Members
Liquidators: David R Wilton IPno: 5708 Adrian R Stanway 2665
Firm Name: PricewaterhouseCoopers
Address: Cornwall Court 19 Cornwall Street
City Postcode: Birmingham B3 2DT


FINELIST:  Up for Sale, Founder Rejects Claims of Cover-up
----------------------------------------------------------
Birmingham Post reported last week that accountancy methods used
by Midlands car parts firm Finelist opened a row between the
company's former boss and auditors who looked at its books. The
auditors, acting for Finelist's buyers are said to have failed to
uncover certain questionable accounting practices. But the
founder of Finelist and its former executive chairman, Chris
Swan, rejected claims there had been a cover-up in the accounts.

PriceWaterhouse Cooper acted for Finelist and Arthur Andersen
were AutoDistribution's accountants. Finelist, based at
Stratford-upon-Avon, was acquired in March by the French company
but two weeks ago Finelist went into liquidation. The failure to
integrate the pair may have been due to both carrying large
debts. PriceWaterhouse Cooper said Finelist was its client and
was bound by client confidentiality. Arthur Andersen also refused
to make any comment but an informed source said the work carried
out by the company on the books was 'of limited scope'. It had
several parts to it and the first pre-bid work was a simple task
to gather up information on Finelist and to give an informed
opinion about the company as a possible target for takeover. The
takeover bid itself was governed by the takeover code, said the
source.

'When the bid went in the target company was reluctant to give
access to the books and records because it must give the same
access to anyone making a bid.' Arthur Andersen, it was claimed,
did not have access to the books and there was no way it could
identify any accounting irregularities 'if indeed there are any'.
The source said Arthur Andersen was called in to do further work
but by then Finelist was in the ownwership of AutoDistribution.
It was during the 'second bit of work' that a number of issues
were drawn to the attention of AutoDistribution. This work is not
regarded as due diligence by Arthur Andersen because the company,
said the source, did not have the books and records to examine.
Receivers are now running the Finelist business and the company
will be advertised for sale next week, Birmingham Post said.


GLOBAL ASSET: Liquidation Proceedings
--------------------------------------
Company Name: Global Asset Management (Institute) Lt
Previous Name: Global Institutional Asset Manage
Company No: 2728666
Com. Business: Dormant
Appointed on: 26/09/00
Type: Members
Appointed by: Members
Liquidators: Adrian R Stanway IPno: 2665 Ian C Oakley Smith 2000
Firm Name: PricewaterhouseCoopers
Address: Plumtree Court
City Postcode: London EC4A 4HT


GLOBAL FINANCIAL: Liquidation Proceedings
------------------------------------------
Company Name: Global Financial Management Ltd
Previous Name: Rosemark Financial Services Ltd
Company No: 1708944
Com. Business: Dormant
Appointed on: 26/09/00
Type: Members
Appointed by: Members
Liquidators: Adrian R Stanway IPno: 2665 Ian C Oakley Smith 2000
Firm Name: PricewaterhouseCoopers
Address: Plumtree Court
City Postcode: London EC4A 4HT


HARRISONS MOTOR: Liquidation Proceedings
-----------------------------------------
Company Name: Harrisons Motor Services Ltd
Company No: 961249
Com. Business: Motor Dealers
Appointed on: 26/09/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Derek L Woolley IPno: 6047 Allan Cooper 5546
Firm Name: Poppleton & Appleby
Address: 93 Queen Street
City Postcode: Sheffield S1 1WF


INDIGO VISION:  Posts Pre-Tax Loss of 3.12 Million Pounds
---------------------------------------------------------
The Times noted yesterday that Indigo Vision (computer services)
had pre-tax losses of 3.12 million pounds. There is no dividend.


J C HATT: Kitchen Company Goes Into Receivership
------------------------------------------------
A kitchen company which has gone into receivership with debts
estimated at pounds 1.5 million may find a buyer this week,
Birmingham Post reports. Hopes were rising yesterday that all 68
jobs under threat at J C Hatt on the Hartlebury Trading Estate,
Kidderminster, will be saved. About 48 workers are employed to
make kitchens and 20 more are employed in administration. Rod
Butcher, one of the receivers said yesterday that he was taking
to 'two or three people' about a possible takeover of the
company. Mr Butcher and Nigel Price were appointed receivers.

Birmingham Post said that both receivers are from Birmingham-
based corporate recovery and insolvency specialists Moore
Stephens Booth White. Mr Butcher said turnover at J C Hatt had
fallen by more than pounds 1 million in the last 18 months. When
the company made its re-positioning there was a downturn in the
housing market and turnover dropped by more than pounds 1
million. 'These losses caused cash flow problems and led to
receivership.

Mr Butcher said the board was helping him to run the business.
'We are talking to two or three people about a possible purchase
and we are confident of achieving a sale of the company as a
going concern. 'The jobs at J C Hatt will go in the sale of the
business' He said any new owner would not be buying the
liabilities. Mr Butcher said recovering pounds 1.5 million of
debt depended on what assets were sold off. It was not known at
this stage if there would be any cash for secured creditors.


KPMG (CBA): Liquidation Proceedings
------------------------------------
Company Name: KPMG (CBA) Ltd
Company No: 3384264
Com. Business: Dormant
Appointed on: 26/09/00
Type: Members
Appointed by: Members
Liquidators: Peter J Rilett IPno: 5386
Firm Name: KPMG
Address: 100 Temple Street
City Postcode: Bristol BS1 6AG


KPMG (NBA): Liquidation Proceedings
------------------------------------
Company Name: KPMG (NBA) Ltd
Company No: 3384265
Com. Business: Dormant
Appointed on: 26/09/00
Type: Members
Appointed by: Members
Liquidators: Peter J Rilett IPno: 5386
Firm Name: KPMG
Address: 100 Temple Street
City Postcode: Bristol BS1 6AG


OLIVER GROUP: Benson to Buy Struggling Shoe Shops
-------------------------------------------------
Benson Shoe said yesterday it had agreed to pay 6.1m pounds in
cash for Oliver Group and revealed plans to re-brand the
struggling group's shoe shops and take them down market, The
Independent reports. The deal is worth 12p a share and Benson
said it would make the company the UK's third-largest shoe
retailer by turnover, adding Oliver's 270 shops and the Timpsons
brand to its 180 stores.

Benson, which is privately owned and trades under the names
Discount Shoe Zone and Tylers Express, said it would finance the
deal using a loan facility from the Bank of Scotland. Oliver was
in two failed merger bids last year with a buyer thought to be
Stead & Simpson. The new offer already has 60 percent support
from shareholders. Oliver also reported a 2.5m pounds pre-tax
loss in the six months to 29 July, compared with a restated 1.9m
pounds loss last year. An exceptional write-down of assets
brought its first-half loss before tax to 10.9m pounds.


OLIVER GROUP: New Owner Plans to Rename Shoes Chain
---------------------------------------------------
The Times reports that the Oliver Group, the loss-making shoe
retailer, is quitting the stock market, returning to private
ownership after 48 years as a listed company. A 6.1 million
pounds takeover by privately owned Benson Shoe, announced
yesterday, will see the Oliver, Timpsons and Olivers Timpson
brand names disappear from the high street. They will be replaced
by Benson's Discount Shoe Zone brand, under the new owner's plans
to rename the chain over the next few years. Doug Rogers,
chairman of Oliver, said that the offer was "a welcome move in
the overdue consolidation of the UK footwear retail sector".
Oliver, which has incurred a loss in each of the past three
years, has been hit by a declining market, tougher competition
and flat or falling selling prices.

Over the past three years it has shut 58 shops, opened 16 and
refurbished 65. Although the new and upgraded shops had performed
well, they could not compensate for the un-refurbished stores.
Oliver said. Turnover has been little changed at about 70 million
pounds a year for five years. After Mr Rogers became chairman
last October, Oliver began a review of its future, concluding
that it could not remain an independent venture.

The Times said that Benson based in Leicester, has been seeking a
merger with its locally based rival for several years. Anthony
Smith, Benson's chief executive, said: "It has been frustrating
that the previous management have not wanted to speak to us it
was only since Doug Rogers arrived that we could sit down and
talk." The takeover will more than double Benson's outlets. At
present it owns 180 Discount Shoe Zones and Tylers and Tylers
Express in Ireland, while Oliver has 260 outlets. Oliver shares
rose 1p to 12p, in line with Benson's cash offer.


WOOLWICH: Court Approves Barclays' Purchase
-------------------------------------------
Ananova noted yesterday that Barclays Bank has completed its 5.4
billion pounds acquisition of former building society the
Woolwich. The acquisition was sanctioned by the High Court
Tuesday. Under the terms of the deal announced in August,
Woolwich shareholders will receive Barclays shares and 1.64
pounds for each of their Woolwich shares. Their new share
certificates and cheques will be posted on or before November 8,
Barclays said.

Matthew Barrett, Barclays group chief executive, said: "The
acquisition of the Woolwich adds great pace and impetus to
driving forward our strategy of getting closer to customers and
widening our range of products and services." The combined group
will have around 16 million customers.


ZEN RESEARCH:  Posts $13.96 Million Loss
-----------------------------------------
The Times reported yesterday that Zen Research (computer
hardware) announced a $13.96 million loss for the nine month to
September 30. The company is not scheduled to pay a dividend.



S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA.  Lexy Mueller,
Mercy Villacastin and Cristina Pernites Editors.

Copyright 2000.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing  and photocopying) is strictly prohibited without
prior written permission of the publishers.  

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is $575 per half-year, delivered
via e-mail.  Additional e-mail subscriptions for members of the
same firm for the term of the initial subscription or balance
thereof are $25 each.  For subscription information, contact
Christopher Beard at 301/951-6400.


             * * * End of Transmission * * *