The radio station Juice FM has returned to its roots after being sold back to its founders.

The station has been bought for £450,000 by a new company formed by the team who originally launched it as Surf FM back in 1998.

Troubled media group Forever Broadcasting sold the station because it was making a loss.

The company has also disposed of its 35 per cent shareholding in fledgling Worthing radio station Splash FM.

Both Juice and part of the Splash FM stake have been bought by new company Brighton and Hove Radio, formed by Surf FM founder Daniel Nathan and former managing director Steve Stark.

Mr Nathan and co-founder Eugene Perera sold Surf FM to Forever in December 2000 for more than £4 million.

Since then Mr Nathan has continued working in radio, running successful production company Festival Productions and several music-related web sites. Mr Stark is managing director of Festival Productions.

Mr Nathan said: "We passionately believe the city's only dedicated local radio station should live and breathe Brighton.

"We look forward to working with the existing management team to create a radio station that truly reflects the people, places and sounds of our unique home town."

Co-direcor Mr Stark said: "We are thrilled to announce that Juice 107.2 is coming home.

"Brighton is really buzzing at the moment. The existing management team has made great progress over recent months and there couldn't be a better time to be investing in the future of this dynamic young business."

In the year ending September 30, 2002, Juice made a loss of £500,000 and had net liabilities totalling about £1 million.

Despite the station's grim outlook, Mr Nathan and Mr Stark are convinced they can turn around the fortunes of Juice, which broadcasts on 107.2FM.

Mr Nathan said: "Saying goodbye to Surf was always going to be a wrench. But ultimately it was business. We would not have taken the decision to buy back the station if we did not think we had the power to turn it around.

"I think one of the reasons Forever did not do as well as they hoped was that they were so removed, culturally, from Brighton. The company has a fantastic record in big city radio stations but Brighton is not a typical big city."

Mr Nathan said there were no immediate plans to change Juice's name.

He said: "We will get everybody at the station involved in any changes. All I can say is watch this space."

Even though Forever will use the sale proceeds to pay off its debts, it will still be £800,000 in the red.

On Friday, the company also announced the sale of its Liverpool Juice station, in line with the strategic review instigated by its board. It still owns Peak 107 FM in Chesterfield, 107.7 The Wolf in Wolverhampton and Tower 107.4 in Bolton, which are operating at a profit.

Forever chairman John Josephs said: "The sale of Juice Brighton substantially improves the group's operating cash flow and the receipt of the disposal proceeds has enabled Forever to further reduce its indebtedness allowing the board to deliver value to shareholders from a significantly stronger position.

"The operating performance of the company continues to improve and I believe the trading prospects for Peak, The Wolf and Tower are strong."

Brighton and Hove Radio bought the Splash FM stake, in conjunction with its founders, for £250,000.

Splash chairman James Brathwaite will take on a similar position at Brighton and Hove Radio. Splash only began broadcasting in May and has therefore not yet produced statutory accounts.

Juice and Splash employees have all been informed of the changes.

Splash managing director Roy Stannard said: "This will not affect the style of our station. The Forever interest did not impact on the running of the station a great deal.

"Splash has been in profit since it started."

Thursday October 02, 2003