GAK gone bust...

[Mudpup]

A friend in the biz just told me that GAK in Brighton has just gone pop......

Sad times 

[franzbassist]

No!  Always had great dealings with them. Sad times indeed.

 

[BassApprentice]

Hold on...Might not be so cut and dry.

 

It could very well be on the edge, but I don't think you close for 7 days if you're in administration.

 

[Mudpup]

6 minutes ago, BassApprentice said:

Hold on...Might not be so cut and dry.

 

It could very well be on the edge, but I don't think you close for 7 days if you're in administration.

 

You have to cease trading i believe even if its just temporary until the process is underway

[Huge Hands]

Sad times if so.  I bought a Roland electronic drum kit there about 11 years ago and the sales guy was really helpful and chucked in about £100 of free sticks with it.

 

I often would buy online from them if competitive on stuff too.

 

 

[fretmeister]

GAK Online is set up as a different company to the shop, so if the shop has gone down I expect the online bit to stay.

 

I hope it hasn't, I always got good service from them.

[fretmeister]

https://www.theargus.co.uk/news/25036732.brighton-shop-gak-music-emporium-north-laine-closes/

 

 

[Steve Browning]

A look at the topco filed consolidated accounts shows losses for the last two years. Store told the local paper they were closed 'for maintenance'. £30m t/o in GAK.co.uk Ltd. £6m operating profit after cost of sales.

Edited March 26 by Steve Browning

[chris_b]

I used to visit when in Brighton. Always a good experience. This is sad news.

[Mediocre Polymath]

Huh. I was in Brighton on Monday and walked past the shop in the North Laines, but didn't try to go in. It did occur to me as I was passing that it was starting to look a bit shabby and neglected.

[Lozz196]

Not something I would have ever expected to see

[Terry M.]

This is really sad news. I relish my trips to Brighton and GAK was always a feature. I bought my second ever bass from them and the service was excellent 😞

[Marc S]

Oh no! Sad news indeed 😞

[jonno1981]

I hope someone comes in and buys the business. New branch of guitar guitar maybe? £30m turnover is significant! 

[Mudpup]

I have a feeling it will pop up again under another name in the same group and leaving all the supplier debt with GAK

[jonno1981]

2 minutes ago, Mudpup said:

I have a feeling it will pop up again under another name in the same group and leaving all the supplier debt with GAK

Suppliers won’t be happy if that’s the case. Doubt they’ll supply the new co if this happens. 
it’s a horrible time for the staff, I’ve been there and it’s awful. 

[Mudpup]

21 minutes ago, jonno1981 said:

Suppliers won’t be happy if that’s the case. Doubt they’ll supply the new co if this happens. 
it’s a horrible time for the staff, I’ve been there and it’s awful. 

Suppliers can be a mercenary bunch. If it's a choice between A - kissing all your money goodbye or B - kissing all your money goodbye and maybe make a bit of profit back by continuing to supply some will take the second option. Especially with a company capable of doing some turnover with them. 

 

[BassBiscuit]

Worrying times.

There seems to be talk of a management buyout with 2 directors Max McKellan and Ian Stephens seeking help with funding from a Private Equity fund.

Sometimes though these deals don't happen in time..... And firms go under...

 

[Beedster]

1 hour ago, Mudpup said:

Suppliers can be a mercenary bunch. If it's a choice between A - kissing all your money goodbye or B - kissing all your money goodbye and maybe make a bit of profit back by continuing to supply some will take the second option. Especially with a company capable of doing some turnover with them. 

 

 

That\s business, and in many respects it makes more sense than not supplying and in effect losing more money

[Russ]

I read earlier that they're closed for refurbishment, and that the Brighton Argus story is rubbish.

 

I hope so. Spent many an hour in there over the years. They always had a very good bass section!

[chriswareham]

2 hours ago, jonno1981 said:

Suppliers won’t be happy if that’s the case. Doubt they’ll supply the new co if this happens. 
it’s a horrible time for the staff, I’ve been there and it’s awful. 

 

If they do a "flat pack administration" then it will be like DV247 (formerly Digital Village and more recently rebranded as Music Store) all over again. The business was shut down and "sold" to the same owners overnight, on a Sunday, with all stock whisked off to Germany to avoid creditors or suppliers getting their hands on it. The whole process should be outlawed, as it just screws over the suppliers, customers and all of us who pay tax since any debts owed to HMRC are also avoided.

[Steve Browning]

1 hour ago, chriswareham said:

 

If they do a "flat pack administration" then it will be like DV247 (formerly Digital Village and more recently rebranded as Music Store) all over again. The business was shut down and "sold" to the same owners overnight, on a Sunday, with all stock whisked off to Germany to avoid creditors or suppliers getting their hands on it. The whole process should be outlawed, as it just screws over the suppliers, customers and all of us who pay tax since any debts owed to HMRC are also avoided.

Known as 'phoenix syndrome'.

[Downunderwonder]

7 hours ago, jonno1981 said:

I hope someone comes in and buys the business. New branch of guitar guitar maybe? £30m turnover is significant! 

Sure is. It doesn't give the split between online and shop though.

 

Online could have been T/O 15M making 7M of the profit. Leave you to do the rest of the maths.

[fretmeister]

It appears to be for sale

 

https://www.business-sale.com/companies-for-sale/musical-instrument-retailer-supplier-fast-sale-asset-sales-fast-sales-south-east-670506

 

 

[Lozz196]

Not too far from Guildford……