GARDNER Merchant, the contract catering business owned by the

hard-pressed hotel and leisure group Forte, has created 90 jobs in

Scotland in the past month. The company now employs more than 4000

people in Scotland across 300 sites.

The business has grown as Gardner Merchant and has won 20 new public

and private sector contracts so far this year. Turnover in Scotland last

year was #41m with the group providing a range of management services,

including contract catering, porterage, security and cleaning.

Several key management appointments have been made in the Scottish

business. Among them Michael Ball has been appointed regional director

for the east of Scotland, and Richard Muir has been promoted to sales

director (Scotland).

Area director Willie Dewar said: ''These appointments further

strengthen our existing senior management team in Scotland and reflects

our commitment to providing an unequalled level of service and support

to our existing and prospective clients.''

The jobs news comes as speculation continues to surround the future

ownership of the Gardner Merchant business. In July, Forte abandoned the

proposed sale of the business to the rival Compass group, the two sides

unable to agree on price. The deal would have made Compass the biggest

supplier of staff canteen meals in the UK.

Forte's finance director, Donald Main, said yesterday that a sale was

''certainly not imminent''. He said the company was continuing to assess

some of the many offers it has received for Gardner Merchant. The

business is now up for sale minus its airport services arm which is

thought to be worth around #130m if it was floated on the Stock

Exchange.

The most recent speculation concerns French caterer Sodexho, which is

rumoured to have offered about #400m for Gardner. Canteen Corporation of

the US and the French hotel group Accor are also thought to be

interested. It is not out of the question that Compass could re-enter

the fray despite its unsuccessful previous offer of #530m.

Forte is currently in its closed season ahead of half-year results due

on October 1. City analysts believe it could be six months before any

sale of Gardner is completed.

Forte is keen to concentrate on hotels, restaurants and Continental

expansion. However, its businesses have been badly hit by the recession.

This, together with the failure to sell Gardner, has piled pressure on

the shares which yesterday lost 3p to 127p.

Profit forecasts have been downgraded with the City now looking for

#90m in the current year compared with earlier forecasts of #140m. With

1992 earnings per share expected to be 7p, the company's prospective

price-earnings ratio is still expensive at 17.6 times.