A TRADITION stretching back almost two centuries ended yesterday with

the resignation of Anthony Letts as chairman of the Dalkeith-based diary

and book-binding company.

Since its foundation in 1796, the Charles Letts company has been

presided over by a member of the family which built up the business into

the world's leading independent publishers of diaries.

But the modern world of cut-throat competition finally caught up with

Letts last year when it was forced to admit failure in its attempt to

diversify from what is a highly-seasonal sector.

Bill Gore, a well-respected company doctor, was brought in to become

chief executive after the company's problems were highlighted by Sir

John Harvey-Jones in his Troubleshooter television programme.

Around #16m in new funds were secured and Mr Gore was backed by a

range of leading institutions, including investment capital group 3i,

Morgan Grenfell Development Capital and Hambros Bank.

Alan Mills, another veteran businessman, was recruited at the same

time to help as a director. He has now been promoted to chairman of the

company with Mr Letts assuming a relatively minor role as a

non-executive member of the board.

''I'm very pleased to take up the post and I suppose it marks the end

of an era as far as the Letts family are concerned, though they will

still have a fair presence,'' Mr Mills said yesterday.

Aside from the departing chairman, the family will be represented by

his nephew, Charles Letts, who is a marketing manager for the group. The

family still has a substantial minority holding in the company which has

gone through a major management reshuffle in the past year.

Letts closed its London base some time ago, transferring its head

office to Scotland where it employs around 250 people. The group has a

US operation based in Long Island, New York.

Trading was described as better than last year and Mr Mills reiterated

the company's intention eventually to seek a Stock Exchange listing.