Masterton Sounds store will continue to trade
Sounds Masterton’s phone has been ringing of the hook after Wairarapa customers heard the news that the franchise had gone $20 million into the red.
Illegal downloading, piracy and increasing online retail sales are being blamed for the decision by Icon Digital Entertainment to put its Sounds music business into voluntary administration.
Icon owes its bank and other creditors almost $20 million and has gone into voluntary administration using legislation that came into effect at the start of the month.
It is thought to be the first large company to use the legislation, which gives companies in financial distress a chance to continue trading.
The move has to be approved by all creditors, who are to meet on November 30.
Sounds Masterton Manager Holly Jackson said the Queen Street store is safe and it’s business as usual with brisk Christmas trade.
“We’ve got 100 per cent control over our business,” she said.
The independently owned and operated franchise is not part of the chain controlled from Auckland head office, she said.
Subscribe to my RSS feed! Thanks for visiting!
