As tipped exclusively by ChannelNews last week, the Allans Billy Hyde musical instrument stores are set to close after the $2 billion dollar Guitar Centre decided not to go ahead with a plan to buy the struggling retailer.
The receivers of Allans and Billy Hyde, Ferrier Hodgson, say the music stores will close within the next few weeks.
Earlier this week Tim Mason, the Joint Managing Director of the failed retail group, sent an email to several interested parties that read:
“We have been told by Guitar Center that they will not buy AMG. That news is very disappointing for us all. We believe that Guitar Center were seriously interested in the business and we know that a number of senior executives spend many long hours including several weekends on the proposal”.
“This probably marks the end of our efforts to sell the whole business. We understand there are a number of offers to buy single or multiple sites and no doubt Ferriers will explore those opportunities”.
“We want to thank you all for your friendship and help during our time together and particularly over the last few weeks. We have both formed lasting friendships with many people during the time we have spent together and we value those friendships”.
Australian Music Group (AMG), which owns the two iconic retail brands, went into administration in late August owing more than $40 million to creditors.
The receivers, Ferrier Hodgson, say they have been trying to find buyers for the business, but those efforts have failed.
The four franchise stores, which are independently owned, will remain open.
The receiver, Brendan Richards, says he appreciates the efforts of the company’s staff.
“The loss of jobs is disappointing, but we exhausted all avenues and there is no other way forward for this business,” he said in a statement.
“These people have served music lovers and been a key part of the Australian music industry for generations. It is a sad day for live music in this country.”
Mr Richards says he will work with the administrator to make employee entitlements available through the Federal Government’s Entitlements and Redundancy Scheme (GEERS) as soon as possible.