Sound Control Turnkey in Administration!
Posted by admin on 3.5.08 - 8:03am
Story from Music Trade News...
Following months of speculation and rumour, Dunfermline-based Sound Control, the UK's largest MI retailer, has appointed John Reid and Bill Dawson of Deloitte, the business advisory firm, as Administrators.
MTN understands that protracted negotiations with a potential suitors have been taking place over recent weeks, but no satisfactory deal had been achievable.
In a statement, DeLoitte claims that the group, which includes Sound Control, Turnkey, Media Tools and Soho Soundhouse, had been affected by increased competition from the Internet.
John Reid said: 'Following a review of the Group's operations the Administrators have today made the difficult decision to close 10 of the Group's trading locations and bring to an end its telesales and internet sales activities. These changes to the Group's operations have resulted in 163 redundancies with immediate effect.
'The Administrators welcome interest in the business and assets of the Group and are already in discussions with a number of interested parties to explore a possible sale.
'However, at the same time as they explore sale options, the Administrator will continue to trade the remaining 16 stores, selling high quality musical instruments to the public.'
No estimate of the company's liabilities has been made available, but MTN understands several suppliers stand to lose considerable sums. According to reports, 163 of the 338 staff have been made redundant.