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DV247: Administrators Grant Thornton release statement

Jory Mackay
DV247: Administrators Grant Thornton release statement

DV247 has released a statement following online backlash against the sale of Digital Village to a subsidiary of German-based Music Store.

There were angry postings online after it was announced that Digital Village's owner, White Rabbit Records, had folded with seven of its eight high street retail locations closed, and its business and assets taken over by a new company (DV247) owned by Music Store director, Michael Sauer.

Mark Thompson, managing director of pro-audio supplier Funky Junk, took to his blog on 11th May and was extremely critical of the motives behind the company's 'pre-pack' administration, prompting a response from the firm. 

DV247 released a statement entitled "DV247 Is Not In Administration" on its website, where the firm said that it will continue to honour all existing orders and valid warranties as well as its price match guarantee.
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Also, in an official statement from Digital Village's administrators, David Dunckley and Ian Carr of Grant Thornton UK confirmed that all of the company's retail locations aside from the Romford HQ and superstore have closed, with 31 employees being made redundant.

They said: “The directors of this business, which has been suffering from falling sales due to the malaise on the high street and constrained consumer purchasing, have been looking for quite some time for a potential purchaser of the company as a going concern. However, this proved impossible to achieve although this sale from administration preserves the profitable parts of the business and safeguards the employment of the 77 people based in Romford.”

Meanwhile, the MIA is offering support to those affected by the store closures, with chief executive Paul McManus encouraging the ex-staff members of Digital Village to send him their CVs. The MIA will then collate all staff CVs and prospective employers in the industry will be able to ask for them as required.

The same system was used to help staff after the Sound Control collapse.

For more information, contact Paul via e-mail or on 01403 800500.

 

Tags: Retail , digital village , music store , DV247

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