Music's over for Allans Billy Hyde

Date
    August 23, 2012


Another storied retail chain has fallen victim to the downturn in spending and rising competition from overseas, after its largest shareholder pulled the plug on the operation.   

Australian Music Group Holdings, owner of the 30-store Allans Billy Hyde chain, has been placed in voluntary administration today, chartered accountancy Taylor Woodings confirmed. London-based majority shareholder Revere Capital has decided to call time on the musical instrument retailer.   

‘‘The majority shareholder has surprisingly decided it doesn't want to support the business through the build-up through Christmas, so it's taken this fairly shock position to withdraw funds,’’ said joint managing director Tim Mason.

The company will continue trading while receivers restructure the group and sell some or all of the stores.


Taylor Woodings has been appointed administrators. Ferrier Hodgson partners James Stewart and Brendan Richards have been appointed receivers and managers.

“We are immediately calling for expressions of interest for a sale of the business as a going concern,” said Mr Stewart.

Employees will continue to be paid by the receivers and entitlements would be covered under the federal government’s General Employee Entitlements and Redundancy Scheme if the business cannot be sold.

However, outstanding gift vouchers won't be honoured nor will deposits be refunded, Ferrier Hodgson said. The affected customers will instead become unsecured creditors of the group.

The Melbourned-based group with roots going back to the 1850s had more than 500 employees last year.

Accounts filed with the Australian Securities and Investments Commission showed that the company breached a $40 million debt covenant with National Australia Bank in 2011, although Mr Mason said that had been resolved.

News of the collapse follows similar failures of confectioner Darryl Lea, electronics chain Retravision, clothing store Colorado Group, and book chain Borders in 2011.    



Read more: http://www.theage.com.au/business/musics-over-for-allans-billy-hyde-20120823-24oa5.html#ixzz24M1Ndoyw

Another one bites the dust 

We buy music online now, haven't they learnt yet? No one wants to go to a store and spend a half hour looking for something they don't have in stock, whilst the shop assistant stares in a trance-like state.