UK music retail chain PMT placed into administration, permanently closing all stores with immediate effect
PMT, one of the UK’s largest musical instrument retail chains, has been placed into administration, making it the latest in a string of musical instrument retailers to shut its doors.
The company’s 11 stores across the UK and one warehouse in Liverpool have been closed with immediate effect. According to Insider Media, 96 people have already been made redundant, with 48 people retained to assist administrators. PMT also operated a significant online store, which has now been taken offline.
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All of PMT’s remaining stock has been sold to UK-based online retailer Gear4Music for an estimated cost value of “up to £2.4 million”, alongside “certain intangible assets” including websites, trademarks and commercial data, worth up to £1.2 million.
S&T Audio Limited – trading as PMT – was the fourth largest retailer of musical instruments in the UK in terms of revenue with a reported annual turnover of £43 million for the year that ended 30 April, 2024. It was also the largest chain of brick and mortar music stores left in the country, with locations in major cities.
A press release from administrators Interpath shared with Guitar.com notes a “variety of challenges in recent times”, including the competitive pricing of instruments shrinking the margins of top-branded gear, “fragile consumer confidence” affecting the sales of high-end products, and rising costs associated with rent, business rates and employees.
It also explains how a string of recent insolvencies across the musical instruments sector have “tightened” credit terms across the supply chain, leading to a “detrimental impact on PMT’s cashflow”.
PMT’s directors initially sought to explore options prior to filing for the appointment of administrators, including a reorganisation of their store estate, as well as sale, refinance and investment options. However, no solvent option was available.
Rick Harrison, managing director at Interpath and joint administrator alongside Howard Smith, comments: “It’s been a tough few years for specialist music equipment retailers who have battled headwinds including rising costs, dwindling margins and the rising cost of living affecting consumer behaviour. Unfortunately, despite the best efforts of the board, in the case of PMT, these challenges proved too difficult to overcome.
“While we are pleased to have concluded a sale of the stock and other assets to Gear4music, our immediate priority is to provide support to those employees who have been made redundant, including supporting them with claims to the Redundancy Payments Service.”
PMT’s 11 brick-and-mortar stores included locations in Birmingham, Bristol, Cardiff, Leeds, Manchester, Newcastle, Northampton, Norwich, Nottingham, Oxford and Romford, as well as a warehouse facility in Liverpool. There was also a store in Cambridge that closed without warning last week.
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Source: www.guitar-bass.net
