Well, this is a bit depressing. Music retailer Music Zone formally closed down yesterday after administrators failed to find a buyer for the retail chain. The search for a buyer isn't completely over, but the company's shops have ceased trading and, frankly, it's not looking good.
As previously reported, Music Zone went into administration at the start of the month after losing the confidence of its key financial backers. Administrators had already shut 32 of the chain's stores last week, but had remained hopeful a buyer may be found for the remaining 72 shops. But yesterday it was confirmed they too would go, meaning the total number of jobs lost will exceed 1100.
Administrator Deloitte said in a statement yesterday: "Whilst discussions continue as regards the business, trading has ceased at this time as there is no certainty that any sale can be achieved".
As previously reported, the Music Zone chain grew from a record stall run by one Russ Grainger in the Manchester town of Levenshulme. He sold the company for £12 million in March 2005 in a buy out backed by Lloyds Capital Development. The new owners subsequently expanded the company by acquiring the struggling MVC record store chain.
Commenting on the fate of the company he founded when it first went into administration, Grainger accused the chain's financial backers from backing away from the company more because of general concerns about the music retail sector in the UK rather than because of Music Zone's specific performance.