Corporate advisory and restructuring firm Kroll has today (Jan. 4) completed the sale of 41 MVC stores to British retailer Music Zone. The sale has secured the jobs of 437 MVC employees, says Kroll in
Corporate advisory and restructuring firm Kroll has today (Jan. 4) completed the sale of 41 MVC stores to British retailer Music Zone. The sale has secured the jobs of 437 MVC employees, says Kroll in a statement. Financial terms of the deal were not disclosed.
The administrators will continue to oversee the trading of those outlets until Saturday (Jan. 7), after which Music Zone will assume responsibilities.
British CD and DVD specialist retailer MVC filed for bankruptcy last December and hired the U.K. arm of Kroll as administrators. MVC cited cash flow difficulties due to "competitive trading conditions."
In the statement issued today, joint administrator Andrew Pepper said the MVC stores achieved "encouraging sales" during the Christmas and New Year trading period.
Prior to administration, Marylebone, London-based MVC gathered 73 outlets and employed about 700 permanent staff. Annual revenue was estimated at approximately £120 million ($208 million).
Nine of the stores were shuttered prior to administration. The remaining 23 MVC stores continue to trade while administrators review the alternatives. "We are continuing to assess the options for the remaining 23 stores and are still willing to consider offers for these stores and would encourage parties interested in these particular outlets to come forward and make their interest known immediately," says Pepper.
Staff in the 23 outlets continue to be paid as part of the administration.
The deal will expand Music Zone's national network to roughly 100 outlets. Stockport, south England-based Music Zone has said it will rebrand each store on a rolling basis in the New Year.