Post by The Collector on Jan 4, 2007 10:24:12 GMT
Oh Shit!
[glow=red,2,300]Music Zone enters administration [/glow]
Music Zone has struggled against online competition
CD and DVD retailer Music Zone has gone into administration.
Music Zone has seven stores in Scotland, three in Glasgow and outlets in Dumfries, Dunfermline, Glenrothes and Inverness.
The chain said it had no alternative to administration after its bankers decided to recover debts without notice and with immediate effect.
Administrators said they would continue trading at the firm while seeking a buyer to run it as a going concern.
The chain has 104 stores across the UK and 1,100 staff and had been struggling against competition online and from supermarkets.
A spokesman for administrators Deloitte also said there would be no immediate redundancies.
Market stall
Music Zone was bought in a £12m management buy-out in 2005, backed by private equity firm Lloyds Development Capital.
A company spokesman said the firm was not alone in experiencing "challenging trading conditions" on the High Street.
He added that pre-Christmas spending was also poorer than expected.
Stockport-based Music Zone said in January last year that it was "optimistic about future growth".
It made the comments after it bought 43 former stores from the MVC chain, which had itself gone into administration.
Music Zone was founded by Russ Grainger from a market stall in Longsight, Manchester, in 1984.
[glow=red,2,300]Music Zone enters administration [/glow]
Music Zone has struggled against online competition
CD and DVD retailer Music Zone has gone into administration.
Music Zone has seven stores in Scotland, three in Glasgow and outlets in Dumfries, Dunfermline, Glenrothes and Inverness.
The chain said it had no alternative to administration after its bankers decided to recover debts without notice and with immediate effect.
Administrators said they would continue trading at the firm while seeking a buyer to run it as a going concern.
The chain has 104 stores across the UK and 1,100 staff and had been struggling against competition online and from supermarkets.
A spokesman for administrators Deloitte also said there would be no immediate redundancies.
Market stall
Music Zone was bought in a £12m management buy-out in 2005, backed by private equity firm Lloyds Development Capital.
A company spokesman said the firm was not alone in experiencing "challenging trading conditions" on the High Street.
He added that pre-Christmas spending was also poorer than expected.
Stockport-based Music Zone said in January last year that it was "optimistic about future growth".
It made the comments after it bought 43 former stores from the MVC chain, which had itself gone into administration.
Music Zone was founded by Russ Grainger from a market stall in Longsight, Manchester, in 1984.
