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Administrators seek buyer for distribution firm Cinram
By Chris Cooke | Published on Wednesday 16 August 2017
Administrators for distribution firm Cinram have confirmed that they intend for the company to continue servicing its existing clients as normal for now, while they seek to sell the business as a going concern.
Cinram, which provides physical distribution services to the music, film and gaming sectors, went into administration on 10 Aug. It followed a tricky couple of months for the company seemingly caused by major client Universal Pictures taking its business to rival Sony DADC. According to reports, 81 employees have already taken redundancy, while a further 29 have transferred over to the Sony-owned logistics set-up.
A statement on Cinram’s website confirming that the company is in administration states: “CLUK will continue to trade while the joint administrators seek to sell the business as a going concern”. The website then provides information on who is empowered to place orders for the company while it is in administration.
Commenting on the collapse of the distribution business, which works for a number of indie labels and distributors, the boss of the Association Of Independent Music, Paul Pacifico, told Music Week yesterday: “AIM were disappointed to see the announcement that Cinram are in administration. This is another blow to the independent sector meaning that for many, there will be no completely independent supply chain available to them”.
He went on: “AIM understands that currently the administrators are working to ensure continuity of service and looking towards a buyer for the business. AIM members who are affected – either directly or via their distributor – and are concerned, are welcome to discuss the situation with AIM, who will be available to advise them”.
