EXCLUSIVE: The Guitar Centre is believed to have walked away from acquiring the Australian Music Group which trades as Billy Hyde and Allans.ChannelNews understands that Ferrier Hodgson partner James Stewart will today move to wind up the group after several organisations–including two major retailers–turned down an offer to buy the struggling group.
Right up until Wednesday, management at AMG believed that the Guitar Centre was seriously interested in buying AMG.
AMG, which trades as Billy Hyde and Allans, was placed into receivership by Revere Capital a private capital group who is believed to be owed up to $27 million.
James Stewart and Brendan Richards from Ferrier Hodgson were appointed as administrators in September.
Unsecured creditors are owed around $13.5 million, while employee entitlements are estimated at $3 million.
The company was allowed to continue trading while the receivers looked for ways to restructure the group and sell some or all of the stores.
The closure of the group will mean that gift vouchers will not be honoured and deposits will not be refunded.
