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Last Updated: Tuesday, 16 January 2007, 15:48 GMT
Music Zone closes Scottish stores
Music Zone store
Six Music Zone stores have closed in Scotland
Six of Music Zone's Scottish stores have closed after the CD and DVD retailer went into administration.

The chain announced it was forced to call in the administrators on 3 January after bankers sought the immediate recovery of debts.

Now it has announced the closure of 31 UK stores - including those in Glasgow, Dumfries, Fife and Inverness - with a loss of 325 jobs across the country.

The retailer had been struggling with supermarket and online competition.

Music Zone's flagship Scottish store in Glasgow's Argyle Street, which opened in December, was among the stores that closed on Tuesday.

Others in Glasgow shopping centre the Forge, Dumfries, Dunfermline, Glenrothes and Inverness were also shut down, with the immediate loss of 45 Scottish jobs.

'A difficult decision'

A further 72 stores across the UK, which employ 775 people, will continue to operate and Glasgow's Sauchiehall Street branch is the only Scottish shop to stay open.

It is understood that several companies are currently interested in taking on the business.

Bill Dawson, partner at administrator Deloitte, said: "During the first week of trading the administrators spent a considerable amount of time assessing the viability of the business and the difficult decision was taken to close a number of stores.

"However, we have commenced a marketing strategy to seek a buyer of the business as a going concern and continue to work hard to achieve a positive result for Music Zone."

Music Zone was founded by Russ Grainger from a market stall in Longsight, Manchester, in 1984.

In 2005 it was taken over as part of a 12m management buy-out, backed by private equity firm Lloyds Development Capital.




SEE ALSO
Music Zone buying 41 MVC outlets
04 Jan 06 |  Business
Music Zone enters administration
03 Jan 07 |  Glasgow and West

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