The umbrella company of DV247, the high-end audio equipment supplier formerly known as Digital Village and affectionately as ‘Dig Vig’, went into administration this morning, with the closure of seven of the chain’s eight branches. The Romford branch (pictured) remains open.
Adam Mitchell, spokesperson for finance specialist Grant Thornton UK LLP, told PSNEurope that Ian Carr and David Dunckley had been appointed administrators for White Rabbit Records Limited, the parent of DV247.
Mitchell went on to confirm that “certain assets” of DV247 had been acquired by Cologne-based retail giant Music Store Professional. “[DV247] considered an offer from a subsidiary of Music Store GmbH, which was completed this afternoon,” said Mitchell. ‘Retention of title’ arrangements – where suppliers can retrieve stock that has not been paid for – were “under review”, Mitchell added.
According to the dv247.com website, the new arrangements were already in place this morning. “Today we’re much bigger and better,” proclaimed a huge banner ad on the home page at 11.30am on Friday. “Something very exciting has happened here at DV247 and it is with great pleasure that we unveil our new partnership with the European retail giant, Music Store.
“We now have 70,000 products and £25 Million of stock available to ship immediately.”
According to a story on gear4music.com, former majority shareholder and chairman of White Rabbit Records/DV247 John Da Costa has been appointed as a director of the new business, alongside Michael Sauer of Music Store.
A photograph on the dv247.com website emphasises that all orders will be fulfilled from Music Store’s German warehouse.
One UK supplier who contacted PSNEurope said this “was not a good day for pro audio in the UK”.
Another supplier told us: “I reckon that DV will be run from Cologne, all the stock will be from Cologne, and all the purchasing will be from Cologne. So I imagine all the UK suppliers are going to be cut out of the picture and many of them will lose a hell a lot of money.”
Adam Mitchell for Grant Thornton could not confirm the number of jobs that would be lost with the closure of the UK stores. The Romford branch of DV247 was open and trading this afternoon when PSNEurope phoned the outlet, with a store assistant suggesting that “an expansion on to two or three floors” was in the works.
Mitchell said a press release on the situation was forthcoming, and invited further questions via email@example.com or on +44 (0)7795 267052.