Old, saggy cloth cat for sale at £4.2m

Bagpuss is heading for a new basket after a group of music industry moguls including Live Aid producer Harvey Goldsmith and DJ Pete Tong agreed in principle to buy the owner of his TV rights for £4.2m.

North Promotions will also acquire the rights to the television series Poppy Cat and Fungus the Bogeyman, as well as the Purple Ronnie greetings card brand, as part of an agreement to buy Coolabi that is subject to due diligence.

North Promotions is an investment vehicle controlled by the Edge Performance venture Capital Trust, which already has a 16 per cent stake in Coolabi. Edge's directors include Sir Robin Miller, the former chairman of Emap and HMV, and Michael Eaton, the music industry lawyer who manages Eric Clapton. Aim-listed Coolabi also reported a collapse in sales yesterday, with half-year revenues tumbling by more than a third from £961,670 to £605,514.