Hollick empire loses second senior executive

United News & Media, Lord Hollick's embattled media empire, yesterday parted company with its second senior executive in as many months when chief operating officer David Arculus announced that he was stepping down after just nine months in the job.

Mr Arculus is understood to be considering an offer to become chairman of IPC, the magazine group which was recently the subject of a management buyout by Cinven, the venture capital group.

A spokesman for Cinven refused to comment but said: "At some stage Cinven will be looking to appoint a chairman of IPC, as with all its investee companies."

Mr Arculus, who helped build up magazine group Emap before he was lured to United, is believed to have quit after deciding it was not possible to work underneath Lord Hollick, United's hands-on chief executive, who has not taken as active a role in the government as many expected him to.

"When David joined before the election everyone assumed that Hollick would spend more time advising the Government," said one industry source. "But Hollick is not that close to the leadership of the Labour Party."

"He may have thought that it would be his show," said another. "But Hollick seems to be there all the time."

Mr Arculus declined bluntly to comment on his departure. "I'm not saying anything."

Mr Arculus's departure follows shortly after the news that Stephen Grabiner, who runs United's regional and consumer titles, would be leaving to take up the job of chief executive of British Digital Broadcasting (BDB), the television group.

News of Mr Arculus' departure pushed United's share price down 26p to 692p. But analysts said this was an over-reaction. "He hasn't been at United long enough to make a difference," said one.

Mr Arculus has a contract which ends in April 1997. His pay has never been disclosed, but his annual salary is believed to be well above the pounds 360,000 he received while at Emap. Some industry sources suggested his payoff could be as high as pounds 1m, although a company spokesman said negotiations were still continuing.

The departure prompted some in the industry to suggest that Mr Arculus is difficult to work with. He left Emap after 25 years after a simmering rivalry for the top job with chief executive Richard Miller.

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