Music Company closings ... (sad times)

Last month Cisco in Japan closed their doors and this week Creative Vibes in Australia and Neuton in Germany are shutting down their operations and Pinnacle in the UK has gone under administration (insolvency, which is similar to bankruptcy/liquidation)

Last year we had the closings of Amato in the UK, Unique in NY, Watts in NY, Syntax in NY and many more.

This economy sucks !!!

In November, Cisco Music (the audiophile label in California) and their parent company, Cisco International, filed for bankruptcy and shut down their business completely. This included all their retail stores throughout Japan, which they shuttered last year, their online store and their vinyl distribution division. Cisco was one of the leading vinyl sources in Japan with many retail stores throughout Tokyo. Their online store was the busiest for vinyl.

Neuton, one of the biggest (vinyl) music distributors, is about to announce its insolvency today. After the collapse of the UK distributor Amato and the Japanese distributor Cisco, the whole vinyl label scene and the distributors put Neuton under extreme pressure. Neuton worked with many top electronic labels, distributing music for diverse labels including Four Twenty, Tresor, Vakant, or Perlon and has worked in the past with labels like Bpitch control, Playhouse, Klang or M_nus.

Australian label and distributor Creative Vibes is calling it a day after nearly 15 years in the business. In a statement, the founders blamed in part competition from vertically-integrated multinationals and the recent massive fall in the Australian dollar for their decision to wind-up.


Pinnacle Entertainment who have been around since 1992 as a leading software, games and music distributor in the UK has gone under administration today.


URP Music Distributors, based in Nashville Tennessee, is still selling loads of vinyl.

Groove Attack acquires Rough Trade Germany

Long-term partnership agreement reached with arvato services

Cologne/Herne, 12 March 2008 – rough trade will return to its independent roots. Effective 1 April 2008, Groove Attack GmbH, based in Cologne, Germany, will acquire a 100% interest in rough trade Distribution GmbH, the Herne-based subsidiary of arvato services. Concurrent with this change in ownership, Groove Attack and rough trade will outsource the management of their logistics and accounts receivable to arvato services under long-term contracts. Manufacturing will be handled by Sonopress GmbH. rough trade will maintain its offices in Herne, and no jobs will be shed. rough trade Benelux will continue to operate as a subsidiary of arvato while making use of the distribution services based in Herne.

"We’re extremely happy to be teaming up with both rough trade – an excellently positioned company with many great labels – and arvato services, our desired logistics partner. With this strong alliance we’re highly motivated and well armed for the future. It will ensure flexibility, stability, and growth for our business despite the ongoing challenges faced by the music industry," says Frank Stratmann, CEO of Groove Attack. "The partnership with arvato services will guarantee that Groove Attack and rough trade can offer their labels and the retail market the best possible service." Both partners are confident that this successful partnership will breathe new life into the music industry.

Heiner Kleinekathöfer, a manager at arvato services, explains: "Groove Attack and rough trade are not just two established names in the world of independent music. They complement each other well structurally and have developed a promising joint business strategy for the future." Groove Attack will profit from rough trade’s integrated distribution structure, consisting of sales and key account management, field sales agents, and telesales, as well as a professional vendor-managed inventory system and experienced label management.

Conversely, rough trade will benefit from the successful B2B online system developed by Groove Attack. The system provides detailed information to both retailers and label partners. Valuable synergies can also be leveraged thanks to Groove Attack’s worldwide distribution network and its well-positioned digital sales outlet, GA Digital. Kleinekathöfer: "After carefully reviewing all of our options, we decided to go with Groove Attack based on these advantages." The Cologne-based music distributor prevailed over several other potential suitors.

Heino Drecker, CEO of rough trade Distribution, adds: "The merger between Groove Attack and rough trade is a groundbreaking step for the entire independent music branch. Both companies have strong traditions and a history of reliability and innovation. The unification of these strengths – along with their national and international networks – will have positive benefits for all participating partners."

[Groove Attack]

URP Music Distributors - New Vinyl 12"/LP Distributor Announcement

United Record Pressing, based in Nashville, Tennessee, is now setting up a new vinyl distribution division.

Our new company is URP Music Distributors. Contact information is below.

We are just getting set up now and have a lot to do this week and we will advise our customers everything we will be offering very soon. Our official new start date is February 1, 2008.

I will be working out of a Florida-based sales office. Pressing facilities and warehouse will be in Nashville.

Also, if you need some vinyl pressed up, let me know. Since we are now owned by a pressing plant, we can possibly get your own label pressed up. Please make sure you own the rights to the music and it has no samples or you have sample clearance.

Get ready – Vinyl is Alive Again !!


Best regards,

Spyder
Sales & Marketing Manager
URP Music Distributors
ph: 1-615-823-7598
ph (toll-free in U.S.): 1-866-252-3520
fax: 1-615-301-9899
e: Spyder@URPDist.com
website: http://www.urpdist.com/

Syntax Music Distribution: Out Of Business

One of New York's vinyl distributors will be shutting their doors for good this Friday. Having been in business for ten years specializing in U.S. and imported house, dance and techno music, Syntax Music Distribution was one of the few remaining vinyl wholesalers in the U.S.

Previously Syntax had their own label group, under the company name of Syntax Recordings and was most famous for their label Big Chief Recordings, along with DJ Onionz. Syntax also was previously doing P+D's (production and distribution) for about a dozen more labels, such as Nu-Faze, Grab Recordings, Fairpark Recordings, etc.

For the past month, Syntax was trying to focus on the import vinyl, but the market was against them.

They will be missed.

Farewell letter sent out earlier today....

From: Syntax Distribution
Sent: Wednesday, 9 January 2008
Subject: Farewell

Hello All,

After over 10 years and countless records, Syntax is closing its doors.

Digital distribution, closing stores, a weak dollar, a poor economy and the rising cost of every aspect of distributing vinyl have brought us to an end.

We're all very sad here as this has been our passion and livelihood for as long as we've been "adults", but the time has come to move on.

It has been a pleasure to deal with you (almost all of you!)

This Friday, January 11th will be our last day. Our phones are no longer working so if you need to contact anyone here please e-mail orders@syntaxmusic.com

Best of luck with all your endeavors.


Sincerely,

The Syntax Crew