Australia's Central Station Changes Hands In MBO

Australian digital company Destra Corp. has sold Central Station Records (CSR) to the dance label's Sydney-based GM Jamie Raeburn. The new ownership is effective immediately. CRS's 11-strong staff team is expected to remain intact.

Raeburn said in a statement, "We are all looking forward to once again becoming a streamlined specialist with a strong focus on artist and new business development in digital, merchandising, management, sync and premium. This new structure is designed to weather the current industry changes by being profit focused in declining areas and growth focused in developing markets".

The buy-out price was not disclosed. Destra paid A$14 million ($9.75 million) when it bought the label in 2006.

CSR started out in 1975 as a record store in Sydney importing dance music from Europe, and expanded to a national five-outlet chain. Founder and managing director Guiseppe Palumbo set the label up in 1986. By licensing hot club tracks from abroad and signing local acts such as Dannii Minogue and Christian Alexanda, it had regular hits in the Australian Recording Industry Association (ARIA) charts. Its branded compilations, associated with dance festivals such as God's Kitchen and Sublime dance radio stations as Wild FM, were strong sellers.

In April 21 this year, Destra was taken over by regional TV operator Prime Media, which announced it was shedding its entertainment assets two months later. Last month, it sold its budget audio and DVD firm Payless Entertainment to its management.