DCSIMG

Further 800 jobs go as Music Zone fails to find buyer

A FURTHER 800 jobs were lost yesterday at collapsed retailer Music Zone after administrators failed to sell the remaining 72 stores in the business.

The redundancies are on top of the 325 jobs that were cut last week after an initial round of store closures, which saw 32 shops shut their doors.

Administrators from Deloitte said it had not been possible to find a buyer in time to save the business and that it was no longer viable for Music Zone to continue trading.

Music Zone had seven stores in Scotland, three in Glasgow and outlets in Dumfries, Dunfermline, Glenrothes and Inverness.

Deloitte yesterday said in a statement: "Whilst discussions continue as regards the business, trading has ceased at this time as there is no certainty that any sale can be achieved."

Music Zone went into administration on 3 January, blaming challenging trading conditions and weak pre-Christmas trading amid increasing competition and aggressive pricing across the DVD and music market. The Stockport-headquartered company grew from a market-stall founded in 1984 by Russ Grainger into a 104-strong chain with stores up and down the country.

Grainger sold the company in March 2005 for 12 million to a management team led by current managing director Steve Oliver, with backing from private equity firm Lloyds Capital Development.

Music Zone doubled in size last January after acquiring 43 former MVC stores after the MVC group went into administration.

Entertainment retailers have been struggling across the board, with HMV also admitting earlier this month it was trading in "very difficult conditions".

 
 
 

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