GC Backs Out of Plans to Buy AMG
As reported exclusively by ChannelNews last week, Australia’s Allans Billy Hyde musical instrument stores are now reported to close after Guitar Centre decided not to go ahead with a plan to buy the struggling MI retailer.
Ferrier Hodgson, the receivers of Allans and Billy Hyde, say the music stores will close within the next few weeks. Allans Billy Hyde had employed 613 people across 25 company-owned stores, four franchise stores and the firm’s head office in Melbourne. Tim Mason, the joint managing director of the failed retail group, sent an email earlier this week to several interested parties that read:
“We have been told by Guitar Center that they will not buy AMG. That news is very disappointing for us all. We believe that Guitar Center were seriously interested in the business and we know that a number of senior executives speny many long hours including several weekends on the proposal… This probably marks the end of our efforts to sell the whole business. We understand there are a number of offers to buy single or multiple sites and no doubt Ferriers will explore those opportunities… We want to thank you all for your friendship and help during our time together and particularly over the last few weeks. We have both formed lasting friendships with many people during the time we have spent together and we value those friendships”.
As previously reported by MMR, Australian Music Group (AMG), which owns the two retail brands, went into administration in late August owing more than $40 million to creditors.
The four franchise stores, which are independently owned, will remain open.