Tue, 07 Sep 2021 | ADMINISTRATION
Music retailer Dawsons Music and Sound has entered administration for the second time in less than 18 months, with part of the business immediately being sold off. The firm, which previously entered administration in May 2020 before being acquired, was said to have succumbed to issues including declining high street footfall, COVID-19 and the global silicone chip shortage.
Following the administration, five of the company’s six locations will close down. The retailer previously operated stores in Manchester, Liverpool, Leeds, Belfast, Reading and Chester. Going forward, only the Chester location will continue as a physical store, alongside the company’s online operation.
Administrators from Interpath Advisory have sold part of the business and assets to Arranged Musical Options Ltd. When Dawsons Music entered administration in 2020, after COVID-19 exacerbated underlying issues, it was acquired by Arranged Musical Options directors Andrew and Karen Oliver, who formed the new company Dawsons Music and Sound Ltd.
Founded in 1898, Dawsons Music is among the UK’s longest-standing music retailers. As well as selling musical equipment, the firm has an education division that supplies musical equipment to schools and universities in the UK and internationally.
Interpath Advisory’s Neil Morley who was appointed joint administrator to the firm on September 1 alongside Howard Smith, commented: “It’s been a really challenging period for Dawsons. The company had continued to experience tough trading conditions, exacerbated by the impact of COVID-19 on high street footfall, even following the easing of lockdown restrictions.”
“Additionally, the company was also experiencing supply issues due to the global shortage of silicon chips and the challenges facing international freight and distribution channels. Against this backdrop, we’re pleased to have been able to secure the sale of part of the business to Arranged Musical Options Ltd., which will ensure the Dawsons brand continues to trade a retail store and retains an online presence.”
In a statement, Interpath Advisory said: “Immediately following their appointment, the Joint Administrators sold part of the Company’s business and assets to Arranged Musical Options Ltd. The business will continue to trade from one store in Chester, as well as retaining its warehouse facility in Haydock. A total of 18 members of staff have transferred to Arranged Musical Options Ltd. as part of the sale.”
“Regrettably, due to the closure of its remaining operations, 48 members of staff have been made redundant on the appointment of the Joint Administrators. As a matter of priority, the Joint Administrators will be providing these employees with the support and information they need to be able to make claims from the Redundancy Payments Office.”
View the latest distressed UK businesses here.
The e-commerce retailer that sells goods imported from China and India through eBay and Amazon. Following a change in circumstances, the owner is now seeking to sell the business and retire. The business sells a wide range of imported products throug...
LEASEHOLD
The business has traded from this site for over 10 years and was later purchased by the owner 4 years later who embarked on a complete transformation to enable him to attract a wider customer base.
FREEHOLD
A rare opportunity to acquire, by way of a share purchase, all of the issued share capital in this highly profitable UK Limited company (“the Business”) that has been established for more than 15 years. This company was set up by current owners o...
LEASEHOLD
|
24
|
|
Jun
|
E-commerce imports retailer up for sale for £1.6m | BUSINESS SALE
Deals Incorporated, a Manchester-based e-commerce retailer t...
|
23
|
|
Jun
|
Auto Trader completes acquisition of Autorama at nearly 16x gross profits | BUSINESS SALE
Auto Trader has completed the acquisition of new vehicle lea...
|
22
|
|
Jun
|
Acquisitive ESG consultancy set to be sold | BUSINESS SALE
An acquisitive environmental and sustainability consultancy ...
Sign up to receive our acquisition alert emails to get your FREE guide
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources