Rumours regarding the online retail giant started yesterday wtih the announcement that it had closed its remaining High Street store in Liverpool.
Earlier today director Jason Tavaria placed the firm in administration, with Manchester firm Beevers and Struthers handling affairs.
S&T Audio (the trading name of retailer Professional Music Technology) has already arranged to take over the business, the staff and the warehouse distribution centre in Liverpool.
S&T director, Simon Gilson, stated: "We are in the process of working with the management team at Dolphin to continue trading. Discussions with suppliers are continuing and we ask the trade to give us 30 days to get initial stages completed.
"Unlike other administrations the industry has seen in the past, we believe that we can keep Dolphin Music trading and drive business forward. Dolphin Music has a fantastic brand, customer base and a good team. Unforeseen and unfortunate set of circumstances has caused this to happen, but fortunately we have been able to reach an agreement and save the industry from another Sound Control situation.”
An email will be sent to all suppliers from S&T Audio in relation to outstanding stock and business arrangements with Dolphin Music.