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Music Zone in crisis as sales drop

04/01/2007

Stockport-based CD retailer Music Zone has gone into administration after admitting that high street sales were "challenging".

The music chain, which was founded in Longsight, Manchester in 1984, has been struggling against online CD and DVD retailers.

Music Zone said that its banks moved to immediately recover debts and withdraw credit facilities without notice, meaning the firm was forced to go into administration.

Accountancy firm Deloitte has been appointed as administrator.

A spokesperson for Music Zone said: "There is a growing number of high street retailers like Music Zone experiencing challenging trading conditions. Pre-Christmas spending was also poorer than expected."

The company, which has over 100 UK stores, will continue trading while a buyer is sought.

Music Zone was bought out by its management team and backed by Lloyds TSB Development Capital in 2005.



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