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Wednesday, 4 January 2006, 14:53 GMT

Music Zone buying 41 MVC outlets

DVDs 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.



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Related to this story:
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 )

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