MICHIGAN GENERAL &lt;MGL> TO SELL KRESTMARK UNIT

  Michigan General Corp said
  it agreed to sell substantially all of the assets and certain
  liabilities of its Krestmark subsidiaries to LCB Holdings Inc
  for 6.5 mln dlrs cash.
      Sale of Texas-based Krestmark, a maker of doors, door
  frames and other products, will allow Michigan General to
  concentrate on retailing through its Diamond Lumber and
  Savannah Wholesale units.
      Proceeds of the sale will be used to reduce debt. The deal
  is subject to execution of a definitive agreement.
      Krestmark had revenues of about 40 mln dlrs and operating
  losses of three mln dlrs in 1986, the company said. It has been
  accounted for as a discontinued operation since last September.
      Dallas-based LCB is a privately-held maker of structural
  steel joists and rack and storage handling systems.
      Michigan General also said its Diamond Lumber homebuilding
  products retail unit closed nine unprofitable stores in the
  first quarter and reduced its headquarters staff by 10 pct. The
  nine closed stores, which had pretax operating losses of 1.7
  mln dlrs in 1986, are being sold to provide cash for
  operations.
      About 4.5 mln dlrs of inventory from the stores is being
  transferred to other locations, the company said.
  

