“Difficult conditions” cited as music retailers Allans Billy Hyde and Gallin’s enter voluntary administration
Two Australian music retailers have gone into voluntary administration, with their administrator Ferrier Hodgson citing “the difficult conditions in the music industry as a contributing factor”.
Ferrier Hodgson is calling for expressions of interest for a sale of Allans Billy Hyde Pty Ltd (Allans Billy Hyde) and Gallin’s Musicians Pro Shop Pty Ltd (Gallin’s).
They offer a wide range of musical instruments including guitars, amplifiers, pianos, keyboards and drums.
One of the two administrators, John Lindholm, said the business was “well-stocked while the administrators consider the restructuring and realisation opportunities.”
Lindholm expects a sale to go through within weeks as Allans Billy Hyde, in particular, has a strong brand name.
He said that employees will continue to be paid normally by the administrators.
Reports are that former staff from 11 stores were owed thousands of dollars from a wrong calculation of awards and penalties.
Since Ferrier Hodgson was appointed, two stores have closed their doors: Alexandria (NSW) and Southport (QLD).
Suppliers reportedly arrived to pick up their stock, claiming they had not been paid.
Only two outlets are trading in Melbourne: Allans Billy Hyde at its flagship on Bourke Street and Gallin’s Musician Pro store in Prahran.
In the meantime, Australian Music Group – which owns the two retailers – faces the Federal Court on Friday, July 6 after the Australian Taxation Office (ATO) filed to wind it up three months ago.
The company was set up by one-time musician Con Gallin.
Allans was established in the 1850s, and Billy Hyde in 1918. Both were high profile brands in their day, and merged in 2010 with 30 stores and a workforce of 500.
Gallin’s came into existence in 1989.