Contact: Emma Thorogood
Deloitte
Public Relations
+44 207 303 6264
Contact: Ali Agmen-Smith
Deloitte
Public Relations
+ 44 (0) 207 303 0514
Music Zone, the UK’s third largest music and film retailer by number of stores, has been placed into administration.
Bill Dawson, from Deloitte’s Reorganisation Services division, has been appointed administrator.
Music Zone operates from 104 stores across the UK, employing 1,100 staff. Its turnover in the current financial year ending May is forecast at £115million.
A spokesperson for Music Zone said: “There is a growing number of high street retailers like Music Zone experiencing challenging trading conditions. Pre-Christmas spending was also poorer than expected.
“The decision by our bankers to recover debts and withdraw credit facilities without notice and with immediate effect left us and our private equity backers with no real alternative other than to appoint administrators.”
Bill Dawson, Partner at Deloitte, said: “Music Zone has an excellent store portfolio with a UK-wide footprint covering predominantly prime high street locations. We’re currently trading the business while seeking interested parties to acquire Music Zone as a going concern.”
A spokesperson for LDC, the firm’s private equity backers, said: “Despite the best efforts of a very capable management team, Music Zone has struggled in the face of aggressive pricing and deteriorating sales across the music and DVD sector.
“We’re now working closely with management and the administrators to identify the most favourable outcome for employees, creditors and shareholders.”
Enquiries relating to the business should be directed to Deloitte on +44 (0)161 832 3555 or +44 (0)161 455 6456 or +44 (0)161 455 8765.
About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press.
