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US BUYER WRITES-OFF $1M AS M&K DEAL GOES SOUR

News, 01 July 1997

AMERICAN FULFILMENT firm LCS Industries is licking its wounds following its abortive attempt this spring to purchase Liverpool-based handling house McIntyre & King. The US company has revealed that it is taking a non-recurring charge of circa $1m to write-off its entire investment in M&K, while control of the latter has passed to one of its previous owners, managing director Brian King. Although both sides were earlier snarling at each other with threats of legal action, King told Debrief that litigation has been mutually withdrawn and a loan made to M&K by LCS remains in place. Meantime, M&K continues to trade normally and is considering widening its share ownership by issuing share options to staff. [M&K turnover in the year to May 1996 was £12.037m and pre-tax profits £175,000.]