Worthington Group - Disposal, etc

RNS Number:1049E
Worthington Group PLC
20 January 2000

Worthington Group plc 

In a further move towards reducing the Group's textile interests and
introducing a new core activity, Worthington Group plc are pleased to announce
the disposal today of the business, assets and liabilities of Louis Goldstein,
a button wholesaler, and the business and stock of Kersen Trimmings, a fashion
trimmings wholesaler, for an initial cash consideration of #580,000 payable in
full today. The businesses are being acquired by Geoffrey Grant and Janet
Miller, the current Chairman and Managing Director of Louis Goldstein.

The net assets of the businesses amounted to #465,000 at 30 September 1999,
and the pre tax losses for the year ended 31 March 1999 were #330,000.

Over and above the initial consideration, Worthington will also receive
reimbursement for the net cash outflow from the two businesses since 30
September 1999, amounting to approximately #300,000 which will be repaid in
monthly instalments by 31 December 2001.

The total consideration will be utilised to further reduce the Group's bank
borrowings.

In addition to the above, we are also announcing that following a detailed
review of the S Jerome & Sons Limited worsted operation at Shipley, and in
response to the continued difficulties faced by some of its customers, it is
scaling down the worsted operation so as to restore competitiveness.

The Shipley site will now be too large for the continuing operations and
therefore will be run down over a period of months and the business
transferred to other sites within the Group.  From current indications, it is
expected that this Shipley site should attract substantial offers, given its
development potential.

The Sales and Design team and administration staff of S Jerome & Sons Limited
will be moving to Eccleshill, Bradford.  All the Group's weaving will then be
centred at West Yorkshire Weavers in Keighley.  We will enter into full and
meaningful consultations with all employees affected by these changes.

The worsted industry has become far more price competitive and has contracted
in recent years.  The moves referred to above will, however, reduce costs and
improve efficiencies and quality.  This will yield real cost advantage such
that Jerome will maintain its position as a major player in the industry and
will improve its ability to service its customers more effectively.

20 January 2000

Contact Nos:  John Taylor (Chief Executive)   01274 200736
              Gavin Kaye (Financial Director) 01625 660010


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