Sat, 13 Jul 2013 | ADMINISTRATION
A classical music recording distributor in the UK has entered administration following the collapse of its international parent company.
Codaex UK entered administration earlier this week after several of its clients lost faith in its future following the collapse of its Benelux-based parent, Codaex.
Ginny Cooper, managing director of the UK company, explained in a letter to clients that the company's decision to put itself into administration came about after several of its labels decided to switch to other distributors. At its peak, the firm distributed about 100 labels but, while it remained profitable, concerned suppliers began to desert the business upon learning of Codaex' fate.
Ms Cooper added in her letter: “We have enjoyed every minute of building Codaex UK into the company it became, but sadly circumstances beyond our control at our parent company ultimately decided our fate.”
The industry is keen not to lose a British distributor, however, and there is some talk of a new company being formed if Codaex is bought out of administration.
Challenge Classics, a producer and distributor, is thought to be among the potential suitors for the distressed business or at least some of its assets. Shortly before Codaex collapsed, it formed New Arts International (NAI) as a joint venture with Challenge in order to split warehouse and distribution costs.
Challenge has now announced that it is in negotiations to buy out Codaex's share of NAI. A statement from the firm explained that the group is likely to work with Proper Note, while the business' operations in Benelux will see the firm sell directly to consumers.
Codaex UK noted their frustration at the situation, which they have said was exacerbated by the rumours that spread through the close-knit recording industry.
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