Business briefs for June 3, 2002

Monday, June 3, 2002 | 11:15 a.m.

Losses narrow

The former controlling owner of the All-American SportPark and the Callaway Golf Center said bad golfing weather prolonged the Las Vegas company's string of losses, which narrowed slightly in the first quarter.

Privately held Sports Entertainment Enterprises Inc., Las Vegas, which formerly controlled the Callaway Golf Center at Las Vegas Boulevard South and Sunset Road, reported a loss of $102,140, 1 cent a share, for the quarter ended March 31, compared with a loss of $218,678, 3 cents a share, for the same period a year earlier.

The company formerly held a 67 percent interest in the All-American SportPark, but spun that off to shareholders last month.

The company, which now operates a golf and tennis retail store at Rainbow Boulevard and Sahara Avenue, had first-quarter revenue of $1.22 million compared with $1.26 million for the same period a year earlier.

Company officials said unfavorable weather conditions cut into retail sales as well as reduced the number of golf rounds played. Revenue from golf play fell to $587,942 in the quarter compared with $620,464 and retail revenue was off modestly from $643,650 to $636,507.

Music sharer bankrupt

SAN FRANCISCO -- Napster Inc. filed for Chapter 11 bankruptcy protection today, seeking court protection from creditors as music industry heavyweight Bertelsmann AG follows through on a plan to take over what's left of the company.

The Internet music-swapping service has agreed to sell its assets to Bertelsmann for $8 million in cash and the assumption of certain liabilities, according to papers filed in a Wilmington, Del. court.

Those liabilities include any new loans to Napster and forgiveness of the $91 million Bertelsmann loaned Napster before the filing, Napster's bankruptcy lawyer Rick Cieri said.

After the bankruptcy process is complete, Napster will sell itself to Bertelsmann, unless another company submits a higher bid, Cieri said.

"The Chapter 11 process is going to be utilized to maximize the value of Napster, whether by a sale to Bertelsmann or someone else," Cieri said.

Manufacturing grows in May

NEW YORK -- Manufacturing activity grew for a fourth straight month in May, and at a faster pace than the previous month, signs that recovery in the battered sector is gaining strength, an industry group reported today.

The Tempe, Ariz.-based Institute for Supply Management said its index of business activity rose to 55.7 percent in May from 53.9 percent in April. Analysts had been expecting a reading of 55.0.

An index above 50 signifies growth in manufacturing, while a figure below 50 shows contraction.

"May was a good month for manufacturing," said Norbert J. Ore, chairman of the ISM. "Sixteen industries saw improvements in new orders. This should help establish momentum in the sector that will carry forward into the third quarter."

The ISM measure is closely tracked by economists because it offers an early reading on the health of the manufacturing sector. Its index is based on a survey of purchasing executives who buy the raw materials for manufacturing at more than 350 companies.