Live Entertainment Inc. Completes Sale of Division

Live Entertainment Inc., a Van Nuys-based videocassette distributor, said it has completed the sale of its specialty retail division, which consists of a chain of 150 music stores on the East Coast, to a group headed by the division’s former top executives.

The purchasing group, Strawberries Inc., said it paid $35 million and assumed an undisclosed amount of debt.

The music store chain, which has outlets in 11 states under the trade names Strawberries and Waxie Maxie’s, was purchased by a group including Ivan Lipton, former president of the specialty retail division, other senior managers of the division, Castle Harlan Inc., and the Jefferson Capital Group.

Live said it would use the proceeds of the sale to redeem a portion of its Series B preferred stock. Redemption of the stock is a condition of Live’s previously announced agreement to merge with Carolco Pictures Inc.