Wed, 18 Dec 2024 | BUSINESS SALE
Logistics group DP World has bought records distributor Utopia Distribution Services out of administration.
Utopia Distribution Services appointed Mark Supperstone and Ben Woodthorpe of Evelyn Partners as joint administrators on 13 December.
Immediately following the appointment, a sale of the business and assets was completed to supply chain solutions provider DP World Logistics UK Limited.
According to Evelyn Partners, UDS operates out of a 25,000 square metre, state-of-the-art facility in Bicester UK. The warehouse ships more than 30 million units, including CDs, DVDs, and vinyl annually and distributes more than 60 per cent of the UK’s physical entertainment products for a number of high-profile record labels and retailers.
Several assets were acquired in the transaction, including IT systems, and it is expected that all UDS employees will transfer to DP World via TUPE. The transaction follows bankruptcy proceedings being initiated against UDS’ Swiss parent, Proper Group AG (formerly Utopia Music AG) in September this year.
Supperstone said: “It is unfortunate to see a business such as UDS that benefits from high-quality facilities and prominent clients in the music industry encounter these difficulties. However, we are encouraged that the business is expected to operate as usual following the sale to DP World, with all jobs saved.”
A DP World spokesperson added: “We are pleased to confirm that we are taking on responsibility for full day-to-day operation of our distribution centre at Bicester, following our recent purchase of the business and assets of Utopia Distribution Services out of administration. We look forward to working closely with our entertainment partners in this expanded role.”
DP World said the UDS facility had been open for more than a year and was proving to be an “outstanding success” supplying physical music and home entertainment to the growing UK market.
Indeed, the sale of vinyl records continues to grow partly as a result of nostalgia amongst older music lovers, but also because of younger people wanting a ‘physical’ alternative to streaming.
“Our reliable and competitive service, which includes state-of-the-art technology across the centre, enables our customers to distribute to the whole of the UK from a single site. DP World is committed to playing its part in ensuring the continued success and growth of the physical music and home entertainment sectors in the UK,” DP World said.
Find out more about insolvency fears in the UK
The client is a well-regarded artisan bakery in the highlands, specialising in high-quality sourdough and pastries, with long-term, loyal retail and wholesale customer relationships.
Well established, cash generative, leading consumer electronics distributor, with a vast portfolio covering electronics, audio visual, sound, light, public address and MI trades. Owners of individual brands with good known growth opportunities.
The business is established and offers its products across the region. The vendors now wish to retire, with the business representing an excellent acquisition for an existing operator within a similar sector or a new market entrant.
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