RED DOG MUSIC IN DIFFICULTIES - hence administration

Whitecat

symphonytech said:

ICBM said:

Whitecat said:

Right on the most inventory-liquidation-happy day of the year too.... shame.

Probably because it's a bad idea to sell stock off too cheaply, if they're in trouble. Better to avoid the whole stupidity.

Or perhaps because most of the stock is quarantined under ROT; the suppliers own it and haven't released the title because bills aren't paid.

As such, the administrators can't sell it (any any price) to satisfy the creditors.

There will probably be a few bones of the carcass to pick over once the suppliers have collected their goods, but if you're expecting to get a US strat for fifty quid then keep walking. Nothing to see here.

Yup, this is most likely.

You'd still think that they'd wished they could have shifted stuff today at whatever BF prices were appropriate for them. Sometimes the feeding frenzy itself is enough...

symphonytech

Two factors that haven't been discussed are the proliferation of credit into retailers, and the proliferation of product:-

- suppliers seem all too keen to take big orders on tick to move product through, and then wonder why their brand is ruined by reckless discounting. They are even more confused when their blue-eyed big dealer goes to the wall owing bucket-loads of cash. Who pays? Dealers who pay their bills.

- brand-owners seem obsessed with constant refreshing of ranges and short life cycles. We have too much product and too few players. The result is a constant pressure on retailers to replenish with the latest releases (that are marginally different at best) and so clear old ranges. When you're trying to position your product as an aspirational purchase at £3k, it sticks in the teeth of both retailers and consumers when that product is obsolete 3 months later.

How many homes have a TV? Every home has multiple. And how many TV options are there? My rough guess would be about 150.

Guitars? maybe one house in 10. And yet our shop has about 500 different models (all paid for btw) which represents a fraction of what is available.

Oh so you love that Telecaster? But you want it in green? Yeah we have that one as well over here...but you don't want one that's sat on the wall? you want us to have a duplicate in stock even though it's £3000? oh, and you'd prefer the new model with tall, narrow frets? Yeah no problem, we have the two of the new green teles with narrow tall frets in stock (as well as the older ones you're looking at) and no one has touched them. Oh, but you want me to match the price of this retailer 200 miles away that doesn't even have one in stock and is just trying to make a quick tenner?

Bonkers industry.

symphonytech

Whitecat said:

symphonytech said:

ICBM said:

Whitecat said:

Right on the most inventory-liquidation-happy day of the year too.... shame.

Probably because it's a bad idea to sell stock off too cheaply, if they're in trouble. Better to avoid the whole stupidity.

Or perhaps because most of the stock is quarantined under ROT; the suppliers own it and haven't released the title because bills aren't paid.

As such, the administrators can't sell it (any any price) to satisfy the creditors.

There will probably be a few bones of the carcass to pick over once the suppliers have collected their goods, but if you're expecting to get a US strat for fifty quid then keep walking. Nothing to see here.

Yup, this is most likely.

You'd still think that they'd wished they could have shifted stuff today at whatever BF prices were appropriate for them. Sometimes the feeding frenzy itself is enough...

you're quite right. And it was strange to see the website appearing to trade all through Thursday with no announcement even though the administrators went in on Wednesday. Customers would have been buying none-the-wiser.

My experience is that little will get cleared in a fire sale though.

gringopig

.

ICBM

The only real reason to go there for most customers was for Rod Vaughn’s repairs - he’ll need to find somewhere else now.

I did buy a radio mic set for my kids’ primary school from them a couple of years ago - cheaper than anywhere else, I think because it was the last of a discontinued model - but nothing else I can remember.

Sadly to a large extent they just perpetuated the business model which killed Sound Control before them.

prowla

guitars4you said:

Jimbro66 said:

DougCoda said:

Tough times at the moment with margins, lots of lines going out at just over cost..some at lower than cost at some dealers.

That's not good It doesn't bode well for the independent dealers we so much value.

How can this trend be reversed?

It is a big problem not just for our trade but for the whole retail industry - High streets are moving to serviced based businesses like beauty salons (hair/nails) and coffee shops or to become empty depleted ghost towns - In my town, an old traditional market town that is not in a 'poor area' and popular with tourists, so take out a host of antique shops, coffee shops and charity shops and the town would be dead - We currently have 6 empty shops on the main street and all within a stones throw of each other - This is a first in my memory of this town 

Some towns/cities are worse than others 

the problem can't be resolved by local town planners/authorities and not sure the government have the ability/interest to help, as a slight reduction in business rates alone is a token gesture at best 

Rightly or wrongly the trend to large 'on line' shopping is with us and I don't see that changing - I'm guilty of doing likewise for some products, because I don't want to sit in a traffic jam for 15 mins, waiting to park at a shopping centre on a busy day - Then wait in a line again to pay at the counter

I was lucky last week - Needed to update my daughters phone with Carphone Warehouse - Went to the shopping centre last Sunday - Must have been 10 staff on - All but 1 was busy serving - Got attended to by a helpful guy so I asked him about why so many staff doing nothing - He said you got in early - Come back in an hour or so and they'll be a 15 min wait to be served and it might take an hour to do the transaction - i was in/out in 15 mins - There is no way Id have waited for 15 mins to be served etc 

I'm not so sure there is a strong surplus of funds within the economy at the moment and the uncertainty over Brexit is not helping - The available funds is one problem, hopeful any uncertainty over Brexit will be resolved soon, one way or another, but could take  a while for any upturn

Any answer would need far more input than 2 or 3 paragraphs on a forum

The issue for the High Street is that it is not a pleasant place to go to these days - I don't want to pay loads to park my car to go and walk past the same shops I could in every other town, in the hope of finding one interesting one.

Some years back I realised that I could spend the best part of a day out and end up coming home having bought nothing but a coffee.