Jackson lays off staff, closes Neverland - for now

LOS ANGELES, Mar 17 (Reuters) Michael Jackson has shuttered his Neverland Valley Ranch home and laid off staff, but contrary to media reports the pop star has not shut down the estate for good, his spokeswoman said today.

Jackson's plans for the sprawling central California ranch have been in question since March 9, when state officials fined the singer 69,000 dollars and effectively closed the estate because he allowed his workers compensation insurance to lapse.

The 47-year-old entertainer was also fined an estimated 100,000 dollars for failing to issue paychecks to Neverland's workers for four months, but dodged legal action this week by paying employees hundreds of thousands of dollars in back wages.

''It is public knowledge that Mr Jackson currently resides in the Middle Eastern country of Bahrain,'' his spokeswoman Raymone Bain said in a statement. ''He therefore decided to close his house and reduce his workforce. This is a common practice when a residence is vacant for an extended period of time.'' The 47-year-old entertainer moved to Bahrain shortly after winning an acquittal on child molestation charges last June. It was not clear if he returned to California to handle his worker's compensation and payroll.

Yesterday, Foxnews.com columnist Roger Friedman, who has written extensively about Jackson, reported that the singer had shut down Neverland for good and laid off some 60 employees, some of whom had worked there for decades.

''Reports indicating that Neverland has been closed or 'shut down' for good are inaccurate,'' Bain said in the statement. She said there would be no further comment from Jackson's camp.

Jackson has made few public appearances since his sex abuse trial ended last year. Bain announced in September that the performer had written a song, to be recorded within weeks with other top artists, to benefit victims of Hurricane Katrina.

But the song, tentatively titled ''From the Bottom of My Heart,'' has not been released.

During the trial, prosecutors said that despite Jackson's years of success, which peaked with the blockbuster album ''Thriller,'' he was struggling to pay his bills and deep in debt after years of overspending.

REUTERS VJ RAI0238