News : Music retailers Allans and Billy Hyde in receivership

Metal Obsession learned earlier this afternoon that music retail juggernaut, Allans and Billy Hyde is currently in receivership with debts of more than $40 million. The music brands have been part of Melbourne’s history, with the first Allans Music opening in Collins St in the 1850s. Billy Hyde’s Music was founded in 1962 and was a mecca for drummers from across the city. Both companies formed an alliance back in  July 2010

Take from AdelaideNow.com.au

Ferrier Hodgson partners James Stewart and Brendan Richards were appointed receivers and managers today by secured creditor Revere Capital, owed $27 million, and hope to sell the business as a going concern.

“Allans and Billy Hyde are two of the best known brands associated with live music in this country holding in excess of 25 per cent market share in retail sales,” said Mr Stewart said.

“We are immediately calling for expressions of interest for a sale of the business as a going concern.”

Billy Hyde Music Adelaide store manager Greg Adamopolous said the store’s 15 employees were in a positive mood and would be telling customers it was “business as usual”.
An estimated 30 employees work at the Allans store in Gawler Place which specialises in selling musical instruments, live music accessories and sheet music.

Mr Stewart said the company’s 500 employees across 25 stores and four franchise stores Australia wide would continue to be paid by the receivers and their entitlements would be covered under the Federal Government’s General Employee Entitlements and Redundancy Scheme (GEERS) if the business could not be sold as a going concern.

But outstanding gift vouchers would not be honoured and deposits would not be refunded – those affected customers form part of the $13.5 million unsecured creditors of the retailers’ parent Australian Music Group Holdings.

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For more info head to: www.allansbillyhyde.com.au