Music Zone
Encyclopedia
Music Zone was a music
retailer in the United Kingdom
, formed in Levenshulme
in 1984, as a market stall in Longsight
, Manchester
.
and began to expand in the Manchester region, rebranding itself to Music Zone Trade Direct and positioning itself as a value retailer. In Spring 2005 Music Zone was sold in a management buy-out for £12 million, backed financially by the private equity firm Lloyds Development Capital (LDC), as well as funds from the board of directors. In the twelve months to 31 May 2005, the company made a £4,000 pre-tax loss on sales of £70.4m. Then in early 2006 the company bought 41 outlets from collapsed chain MVC
, allowing Music Zone to expand nationwide. All stores were branded to 'Music Zone'. The MVC acquisitions took the estate to 104 stores making the chain the third largest specialist entertainment retailer in the United Kingdom, less than 30 stores behind nearest rival Virgin Megastore
.
withdrew its loan and future working capital facilities and decided to recover its debts without notice and with immediate effect.. As a result, on 3 January 2007, Music Zone went into administration
with 31 stores across the UK closing two weeks later. The cause of the collapse was attributed to "challenging trading conditions and weak pre-Christmas trading, amid increasing competition and aggressive pricing across the DVD and music market." By 26 January 2007, all stores were closed. Music Zone's Head Office was closed on 30 January. By the time of closure, the company debts totalled ₤31 million.
announced it would be taking over 67 of the remaining stores in addition to some of Music Zone's head office and warehouse facilities. In March 2007, Fopp had difficulties rebuilding supplier contracts, and shut down a great number of the higher maintenance stores. On 29 June 2007, Fopp went into administration, resulting in the closure of all remaining Music Zone shops.
Music
Music is an art form whose medium is sound and silence. Its common elements are pitch , rhythm , dynamics, and the sonic qualities of timbre and texture...
retailer in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, formed in Levenshulme
Levenshulme
Levenshulme is an urban area of the City of Manchester, in North West England. It borders Longsight, Gorton, Burnage, Heaton Chapel and Reddish, and is approximately halfway between Stockport and Manchester City Centre on the A6 road. The A6 bisects Levenshulme. The Manchester to London railway...
in 1984, as a market stall in Longsight
Longsight
Longsight is an area of Manchester, England, about south of the city centre. Its population is about 16,000.-History:Longsight has been known over the past for its gang related violence, similar to that of nearby Moss Side. Most of the violence came from tensions between 2 gangs; The Longsight...
, Manchester
Manchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
.
History
Soon after, Music Zone opened its first permanent shop in StockportStockport
Stockport is a town in Greater Manchester, England. It lies on elevated ground southeast of Manchester city centre, at the point where the rivers Goyt and Tame join and create the River Mersey. Stockport is the largest settlement in the metropolitan borough of the same name...
and began to expand in the Manchester region, rebranding itself to Music Zone Trade Direct and positioning itself as a value retailer. In Spring 2005 Music Zone was sold in a management buy-out for £12 million, backed financially by the private equity firm Lloyds Development Capital (LDC), as well as funds from the board of directors. In the twelve months to 31 May 2005, the company made a £4,000 pre-tax loss on sales of £70.4m. Then in early 2006 the company bought 41 outlets from collapsed chain MVC
Music and Video Club
Music and Video Club or MVC was a British entertainment retailer which sold DVDs, VHS, audio cassettes, video games, and CDs of popular and specialist titles. At its peak the company operated 82 stores in the United Kingdom and also sold products over the Internet...
, allowing Music Zone to expand nationwide. All stores were branded to 'Music Zone'. The MVC acquisitions took the estate to 104 stores making the chain the third largest specialist entertainment retailer in the United Kingdom, less than 30 stores behind nearest rival Virgin Megastore
Virgin Megastore
Virgin Megastores is an international chain of record shops, founded by Sir Richard Branson on London's Oxford Street in early 1971. Virgin Megastores are best described today as entertainment retailers....
.
Financial problems
On 27 December 2006, the Bank of IrelandBank of Ireland
The Bank of Ireland is a commercial bank operation in Ireland, which is one of the 'Big Four' in both parts of the island.Historically the premier banking organisation in Ireland, the Bank occupies a unique position in Irish banking history...
withdrew its loan and future working capital facilities and decided to recover its debts without notice and with immediate effect.. As a result, on 3 January 2007, Music Zone went into administration
Administration (insolvency)
As a legal concept, administration is a procedure under the insolvency laws of a number of common law jurisdictions. It functions as a rescue mechanism for insolvent entities and allows them to carry on running their business. The process – an alternative to liquidation – is often known as going...
with 31 stores across the UK closing two weeks later. The cause of the collapse was attributed to "challenging trading conditions and weak pre-Christmas trading, amid increasing competition and aggressive pricing across the DVD and music market." By 26 January 2007, all stores were closed. Music Zone's Head Office was closed on 30 January. By the time of closure, the company debts totalled ₤31 million.
Fopp
On 5 February 2007, retailer FoppFopp (retailer)
Fopp is a chain of retail stores selling music, film, books and other entertainment products in the United Kingdom.-History:From its origins as a one-man stall in Glasgow, Scotland, in 1981, it expanded to a chain of over 100 branches throughout the country in 2007...
announced it would be taking over 67 of the remaining stores in addition to some of Music Zone's head office and warehouse facilities. In March 2007, Fopp had difficulties rebuilding supplier contracts, and shut down a great number of the higher maintenance stores. On 29 June 2007, Fopp went into administration, resulting in the closure of all remaining Music Zone shops.