Retailer PMT closes all shops and sells inventory to Gear4music

Music gear retailer Play Music Right now, often known as PMT, has closed down all of its 11 shops all through England and Wales with rapid impact.

The choice follows a interval of wrestle with monetary efficiency for the model, main the administrators of PMT to file for the appointment of directors. Instantly following the appointment, the joint directors concluded a sale of the corporate’s property on 11 June, together with its inventory, to Gear4music.

A spokesperson for restructuring and advisory firm Interpath states, “In frequent with different firms working throughout the music retailing sector, PMT had confronted a wide range of challenges in current occasions which had impacted monetary efficiency. Aggressive pricing of musical devices had shrunk the margins of top-branded gear, whereas fragile shopper confidence was impacting gross sales of high-end merchandise.

“The corporate was additionally impacted by the continued industry-wide upward stress on fastened prices, together with lease, enterprise charges and folks prices. As well as, and following plenty of current insolvencies throughout the sector, credit score phrases had additionally tightened up and down the provision chain, all of which finally had a detrimental impression on PMT’s cashflow,” they clarify.

PMT’s shops have been located in areas comparable to Birmingham, Cardiff, Manchester, and Nottingham. At present, help for the members of its workers who’ve been made redundant is being prioritised. The PMT web site stays on-line on the time of writing, although customers have reported that they don’t seem to be in a position to full a purchase order.

Rick Harrison, managing director at Interpath and joint administrator, feedback, “It’s been a tricky few years for specialist music gear retailers who’ve battled headwinds together with rising prices, dwindling margins, and the rising price of residing affecting shopper behaviour. Sadly, regardless of one of the best efforts of the board, within the case of PMT, these challenges proved too troublesome to beat.”

He continues, “Whereas we’re happy to have concluded a sale of the inventory and different property to Gear4music, our rapid precedence is to supply help to these workers who’ve been made redundant, together with supporting them with claims to the Redundancy Funds Service.”