BusinessBusiness RecoveryMusic Zone and Greeting Card Group enter administration

Music Zone and Greeting Card Group enter administration

Music and greetings card businesses enter administration as conditions on the high street get tougher

More than 3,500 jobs have been put at risk, as two big retailers have entered
into administration.

PricewaterhouseCoopers
partners were appointed joint administrators of Greeting Card Group, which
employs some 2,500 staff across 470 stores.

Music
Zone
has also entered administration, with Deloitte partner Bill
Dawson appointed administrator. The company employs 1,100 people across more
than 100 stores.

A spokesman for Music Zone said the company had ‘no real alternative’ but to
enter administration after its bankers recovered their debts and withdrew credit
facilities with immediate effect.

‘Music Zone has an excellent store portfolio with a UK-wide footprint
covering predominantly prime high street locations,’ said Dawson. ‘We’re
currently trading the business while seeking interested parties to acquire Music
Zone as a going concern.’

Greeting
Card Group
, which operates under brands Cardfair and Card
Warehouse, was restructured during 2006 but retail conditions had remained
‘challenging’.

‘The core stores have been, and are expected to continue to be, successful –
as a result we expect to achieve a going concern sale and are currently in talks
with a number of interested parties with a view to achieving this,’ said joint
administrator Mike Jervis.

Further reading:

Christmas excess boosts insolvencies

£10m sell-off on the table for Little Chef

St Ives offloads finance divisions for £4m

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