Allans Billy Hyde In Receivership, Cancel All Gift Cards

The Australian Music Group, the company which owns major musical instrument retailer Allans Billy Hyde, has been entered into receivership by one of its major creditors.

The company will continue to operate as its assets – there are 25 stores around the country, which employ 500 staff and control 25 percent of the music retail market – are offered up for sale, but gift vouchers will not be honoured and deposits will not be refunded.

Offshore firm Revere Capital, who provided their ailing company with a cash injection earlier this year, have placed the company into receivership and appointed Ferrier Hodgson's James Stewart and Brendan Richard as administrators.

Customers who are holding gift cards will have to join the list of unsecured creditors and any many recouped will be decided by how much revenue can be raised through the sale of assets.

A representative from Allans Billy Hyde failed to return theMusic.com.au's call this afternoon, but Stewart told the ABC, “We are immediately calling for expressions of interest for a sale of the business as a going concern.”

Employees will continue to be paid by the receivers and their entitlements are expected to be upheld by the Federal Government's General Employee Entitlements and Redundancy Scheme.

Struggling against online sales and a tightening retail market, the two famous companies came together in 2010 when Allans Music merged with Billy Hyde Music co-operators Australian Music Group [AMG]. Crescent Capitol had owned a majority stake in AMG until last year, when their sold their interests for a loss of $50.

Prior to Revere Capital's injection earlier this year, AMG are believed to have racked up debts of $60 million.