One of the UK's biggest musical instrument retailers, GAK, based in Brighton, has sold its stock and website to online mega-retailer Gear4music for £2.4 million ($3.2 million). This update follows weeks of speculation and uncertainty, following the brick-and-mortar store's closure on March 25, allegedly for maintenance.
According to a statement on Gear4music's website, the company “has purchased the remaining stock, together with certain intangible assets including websites, trademarks, and commercial data, from the Administrators of GAK.co.uk Ltd and The Guitar, Amp & Keyboard Centre Ltd (together, “GAK”).”
Accordingly, the URL GAK.co.uk now redirects to the Gear4Music homepage.
However, the website clarifies that Gear4music is “not acquiring any part of GAK's trading business, nor any other assets or liabilities, and has no current plans to use the GAK trading name.”
It also confirms that GAK has entered insolvency and appointed an insolvency practitioner, meaning the original company still “legally exists and remains responsible for its liabilities.”
Gear4music also specifies that it is not responsible for fulfilling any orders placed with GAK and suggests that customers may be able to “make a claim as an unsecured creditor in the insolvency” – while any warranty or guarantee issued by GAK is likely void.
According to The Business Desk, this acquisition has positively impacted the online retailer's shares, which soared “by 19 per cent to 139.9p in early trading.”
Furthermore, the company confirmed the purchase of stock with a cost value of £1.8 million ($2.4 million), “together with certain intangible assets including websites, trademarks, and commercial data, £0.6m ($0.8 million).”
Meanwhile, employees have allegedly been left high and dry, with GAK reportedly leaving them in limbo for two weeks, according to local newspaper The Argus.
GAK, which stands for Guitar, Amp and Keyboard, opened in 1992 as a humble market stall and a one-man-operation under the stewardship Gary Marshall. It eventually expanded to a brick-and-mortar store in the heart of the city, as well as an online retailer.
Its closure follows similar trends in mainland Europe and the U.S. Dutch retailer Bax Music recently filed for bankruptcy and ceased operations, while the 300-store Guitar Center chain in the U.S. was recently listed by Moody’s and S&P Global Ratings as a distressed retailer – just months after another chain, Sam Ash, closed all its stores.
