Iconic New Zealand music retailer Real Groovy has gone into receivership, just months after insisting it was not in trouble.
The company, which operates four stores in the main metropolitan centres, announced that it had gone into receivership Oct. 15. In July, Real Groovy confirmed that it was seeking an injection of capital but founder Chris Hart told Billboard.biz then that the company would be able to continue trading if a sale or a new investor did not materialize.
Real Groovy – which first opened its doors in the early 1980s – deals in both new release and second-hand music and DVD product, books, magazines and other entertainment related merchandise.
Although the chain only operated four stores, it was arguably the best-known music retailer in New Zealand and claimed to carry the greatest range of music recordings in Australasia.
Hart declined to comment on the decision to go into receivership and referred all inquiries to the receiver John Cregten of the Auckland-based Corporate Finance Ltd, who has been appointed by the bank Westpac. Cregten, too, declined to comment on the state of the company debts and the number of creditors, saying “it is to early to tell.”
At this stage, it is not known whether the move into receivership affects other areas of Real Groovy’s business, which includes a mail order operation, www.realgroovy.co.nz, and the magazines Real Groove and Groove Guide.
It is understood that a number of manager buyouts of individual stores had been planned and one new company Real Groovy Christchurch has already been registered.