Korg's Australian Distributor in Receivership! :(

[SeedyLee]

Sad news: Korg's Australian distributor, MusicLink, has gone into receivership:

Australian Music Group Holdings Pty Ltd (AMG), trading as Allans + Billy Hyde, Australia’s largest independent music retailer, was placed into receivership today following the appointment of Voluntary Administrators.

Ferrier Hodgson partners Mr James Stewart and Mr Brendan Richards were appointed Receivers and Managers over AMG and a number of associated entities. The appointment was made by the secured creditor (Revere Capital Pty Ltd) and extends to AMG’s wholesale distribution importing business, trading as MusicLink and Intermusic, which commenced in 1973 and supplies over 300 independent music retailers.

Allans + Billy Hyde's is one of Australia's largest musical instrument retailers, and whilst I'd heard that they had gone into receivership a few weeks ago I didn't realise they also owned Musiclink.

Musiclink is currently the only distributor for Korg products in Australia, and they also provide support.

This is very sad news indeed, especially for all the affected staff. It potentially affects many other smaller retailers. Billy Hyde's has been around for almost 150 years.

I wonder how Korg are handling this, and what the impact will be on stock availability, pricing, service and support in Australia?

[BasariStudios]

What the hell is receivership?

[SanderXpander]

http://en.wikipedia.org/wiki/Receivership
Wow, that took me 5 seconds, this being the internet.

[Sharp]

This sort of thing is going on non-stop all over Europe right now.
Lots and lots of places are closing.

Regards
Sharp.

[Thoraldus]

From the Sydney Morning Herald - Sep 18, 2012

THE former boss of stricken music retailer Allans Billy Hyde believes a buyer may still be found for the business even though receivers have started shutting it down.

Market sources said Bain Capital, the private equity firm founded by US presidential candidate Mitt Romney, was among potential buyers circling the group.

''A number of discussions are ongoing with interested parties,'' said John Helme, the former joint managing director of the chain's owner, Australian Music Group Holdings.

He declined to comment on whether Bain was among those interested parties, but criticised the decision last week of receivers Ferrier Hodgson to start the process of shutting down AMG's 24 company-owned stores across Australia.

''Last week's news was premature from our perspective,'' he said.

''We remain hopeful that there will be a credible buyer. With such an iconic business you have to question such a hasty decision.''

A Ferrier Hodgson spokesman declined to comment.

Ferrier Hodgson partners James Stewart and Brendan Richards were appointed receivers of the struggling group on August 23 by secured creditor Revere Capital, owed about $27 million. Revere is a subsidiary of Valco Capital Partners, the private equity arm of retail shutdown specialists Hilco.

Last Wednesday, after failing to sell the business as a going concern, Mr Stewart announced a clearance sale to get rid of AMG's stock, valued at about $45 million, after which the stores will be shut down.

Its 56 head office employees were made redundant as part of preparations for the eventual shutdown of the entire business, which employs about 610 people in its stores.

AMG lost $40.9 million in the year to July 3, 2011, the latest period for which accounts are available.

[Kevin Nolan]

This sort of thing is going on non-stop all over Europe right now.
Lots and lots of places are closing.

Regards
Sharp.

...for example, Ireland

[pawz]

Hi, Very Sad news. As an Aussie affected by this I'm heartbroken for not only myself, but also all the staff and the excellent adivse that they have provided me regarding my Korg purchase and other items as well. I'm still unclear about where I will have to take my Korg should I have a problem with it in the future as I purchased it at Billy Hyde. As it is I'm stranded regarding the repair of my beloved hard case for carrying my Sv-1 for gigs.