[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Wednesday, 4 January 2006, 14:53 GMT
Music Zone buying 41 MVC outlets
Fake DVDs and CDs were partly to blame for MVC's troubles
Administrators at collapsed retailer MVC have sold 41 shops to fellow entertainment store group Music Zone for an undisclosed sum.

The sale will secure the future of the 41 outlets and the jobs of 437 MVC members of staff who will now transfer over to Music Zone.

MVC called in administrators Kroll just before Christmas.

The move was blamed on tough competition from supermarkets, as well as increased music and film piracy.

Improved sales

Kroll said on Wednesday that Music Zone would take over the 41 stores on Sunday, 8 January, and that they would open for business under the Music Zone banner on Monday, 9 January.

The administrator said it would continue to run the remaining 23 MVC outlets while it reviewed their options.

"I and my staff have worked throughout the Christmas and New Year period to keep the stores open and trading, and have achieved encouraging sales," said Kroll's Andrew Pepper.

"We have been in discussions with a number of interested parties regarding the sale of the business, and Music Zone provided the best offer for creditors and employees.

"We are continuing to assess the options for the remaining 23 stores and are still waiting to consider offers for these stores, and would encourage parties interested in these particular outlets to come forward and make their interest known immediately."

MVC was spun out of Woolworths back in August, being sold to a group of retail investors for 5.5m.

Music Zone is led by managing director Steve Oliver, who headed a 12m management buyout at the company last March.

The 41 MVC stores will take its UK chain up to 100.

MVC chain calls in administrators
21 Dec 05 |  Business
Pirate DVDs 'support local crime'
13 Dec 05 |  Scotland
Woolworths sells MVC music chain
01 Aug 05 |  Business
Apax pulls plug on Woolworths bid
14 Apr 05 |  Business
Woolworths warns of tough trading
23 Mar 05 |  Business
Festive sales flat at Woolworths
04 Jan 05 |  Business

The BBC is not responsible for the content of external internet sites


Americas Africa Europe Middle East South Asia Asia Pacific