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Margate are looking for another manager following the sacking of Barry Ashby and player-coach Paul Smith.
A short statement said: "The club has parted company with both its Manager Barry Ashby and player coach Paul Smith, with immediate effect.
"The decision was reached over the weekend after discussions regarding changes the Directors required to be made to personnel, which Barry Ashby refused to implement.
"Whilst the Club seeks to appoint a new Manager, Director of Football, Terry Yorath will assume full control of first team affairs."
Ashby was appointed in the summer to succeed Robin Trott who left at the end of last season.
Director Keith Piper said: "The details of their departure remains internal, end of story. Terry will be in charge for however long it takes for us to appoint a new manager."
Asked if they had anybody in mind to take over, Mr Piper replied: "Absolutely not. We are going to start afresh."
Yorath will be in charge for the first time when Maidstone United visit Hartsdown Park in the Ryman League Premier Division Kent derby on Tuesday night.
He said: "I am saddened by what’s gone on, because I had a good relationship with both Barry and Paul. I only found out myself on Sunday morning."
"Neville Southall (Football Development Officer) is here to help me, and there are other people as well."
Yorath confirmed Margate are talking to striker Mo Takaloo, released by Ramsgate late last week.
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