Losses Continue for Live Entertainment

Live Entertainment Inc., a troubled Van Nuys videocassette distributor, saw its losses widen in the third quarter after its proposed merger with Carolco Pictures Inc. crumbled.

In the three months that ended Sept. 30, Live lost $6.63 million, double its year-earlier loss of $3.28 million. Its third-quarter sales fell 12%, to $33.8 million from $38.6 million.

Live officials said the lower sales reflected fewer video rental releases and the absence of any video that went directly to sales. The third-quarter loss also included about $540,000 in expenses from the canceled merger deal and a $1.56-million reserve related to a receivable owned by Carolco.

For the recent nine-month period, Live reported a loss of $10.8 million, while its sales declined 21% to $81.3 million. A year before, it lost $5.55 million on $103.3 million in sales.