Struggling periods for nearly three years:UK music equipment retailer PMT shuts down, lets go of 96 employees, and transfers £2.4 million worth of stock to Gear4Music
PMT, the UK's Fourth-Largest Musical Gear Retailer, Slams Shutters
ost thrust by mounting financial woes that propelled the company into administration, PMT - a popular name in the British music scene - has shut down all 11 of its stores across England and Wales, ceased trading, and entered administration. The online platform, PMT Online, has also been shuttered.
In a statement, PMT's directors confessed to exploring every possible option to keep the company afloat, including sale, refinance, investment opportunities, and reorganizing their store estate. Howard Smith and Rick Harrison, joint administrators appointed by Interpath, took over S & T Audio Limited, PMT's holding company, on June 11.
Insider Media reports that the closure has resulted in 96 redundancies across PMT's team, with 48 employees retained to assist the administrators.
Gear4music, a Yorkshire-based music retailer, bought £2.4 million worth of PMT's stock and certain intangible assets such as websites, trademarks, and commercial data for £1.2 million. Gear4music has stated that they are not acquiring any part of PMT's trading business and have no intentions of using the PMT trading name.
Founded in 1991, PMT reached its peak with 15 locations across the UK, including a Birmingham outlet that boasted the largest guitar wall in Europe. Simon Gilson and Terry Hope, PMT's owners, faced tough years marked by rising costs, narrowing margins, and a rising cost of living affecting consumer behavior.
Howard Harrison, speaking on behalf of Interpath, expressed his sympathy for the 200 employees who lost their jobs, stating that supporting them with claims to the Redundancy Payments Service was their immediate priority. Harrison also highlighted the difficulties faced by specialist music equipment retailers in the past few years.
The shuttering of PMT is just the latest in a series of music gear retailers to close, following in the footsteps of Brighton-based GAK, Dutch retailer Bax Music, and US retailer Sam Ash Music last year. Unfulfilled orders made through PMT prior to June 11 will not be fulfilled, and customers are advised to make claims as unsecured creditors in PMT's insolvency by contacting Interpath. Warranties or guarantees issued by PMT are likely void, and gift cards or vouchers for the store are no longer valid.
In the broader context, the decline in physical music stores in the UK indicates a challenging retail environment for large brick-and-mortar music stores, reflecting a shift in market dynamics and increased online competition.
Amidst the growing challenges in the retail industry, IT businesses, and the music equipment sector in particular, the administrators, Howard Smith and Rick Harrison, have taken over the holding company, S & T Audio Limited, from the UK's Fourth-Largest Musical Gear Retailer, PMT, on June 11, due to persistent financial problems.
In the wake of the closure, the specialists in the musical equipment industry, including Gear4music, might need to face a more competitive business environment, given the void left by PMT, as online competition and changing consumer behavior continue to exert pressure on brick-and-mortar retail stores.
