Digital Village, or DV247 as many of you know them, have been sold to a German firm. The news broke over the weekend and it comes as no surprise to many of us smaller dealers who have heard rumours of happenings for quite some time now. Digital Village are probably the biggest audio dealers in the UK and according to Audio Pro International, seven of its current high street stores will close. This basically leaves only the Romford Digital Village Store open. White Rabbit Records, who previously owned Digital Village has folded and a new company, DV247 Ltd has emerged. This new company is owned by Music Store director Michael Sauer.
Audio Pro International have reported the following statement from DV's director John Da Costa that was leaked from a letter to their sister company, MI Pro
“We started to come under pressure from the bank to reduce our borrowings, which led to us putting our freehold branches up for sale. We then had no option but to put the business up for sale or attract outside investment. Initially, we hoped this could be done through a solvent process so that we could gradually restructure, but unfortunately this has proved impossible, mainly because of the potential cost of exiting the third party logistics contract. A large German music retailer, Music Store, finally emerged as our best option. After due consideration, it was felt that White Rabbit Records Ltd should go through a 'pre pack' insolvency process in order to drop the crippling expenses that have brought the company down”
The list of the stores Digital Village are closing is Barnet, Clapham, Acton, Bristol, Southampton, Birmingham and Cambridge. The website is still up and is reporting on the events as a good thing for Digital Village. I guess only time will tell if this is a good thing for the company however, with John Da Costa appointed as the other director (with Sauer) it is clear they intend to fight to keep Digital Village alive.