Rick Harrison and Neil Gostelow from KPMG’s Restructuring practice have been appointed as joint administrators to Dawsons Music.
The ‘Big Four’ accountancy firm said that over the last 12 months, the business has experienced declining sales against the backdrop of a “highly challenging retail environment”. With the impact of the Covid-19 pandemic placing further financial strain on the business, the directors took the “difficult decision” to appoint administrators.
Operating online and from six stores in Manchester, Liverpool, Chester, Leeds, Reading and Belfast, the company sells a range of musical products, including acoustic, bass and electric guitars, amps and effects as well as pianos and keyboards.
Established in 1898 in Warrington and employing approximately 75 people, KPMG said Dawsons is one of the oldest retailers of musical instruments in the UK.
Harrison, partner at KPMG and joint administrator, said: “Dawsons is an iconic name in the music industry with its ‘Run by musicians, for musicians’ philosophy.
“While all stores remain closed due to the restrictions imposed as a result of the Covid-19 pandemic, we will continue to trade the business via its online platforms while we assess options for the business.”
He added: “The majority of staff were furloughed prior to our appointment, and we will be speaking to them as a matter of priority over the days and weeks ahead, as we seek a buyer for the business.
“We are presently in advanced discussions with a number of interested parties with a view to a possible sale but would invite any other party who may have interest in acquiring the business and its assets to contact us at the earliest opportunity.”