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comradec
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Joined: 21/09/03
Posts: 1609
Loc: Stockton-on-Tees, UK
Re: Sound Control + Turnkey go into administration... new [Re: Seye]
      #610371 - 30/04/08 11:24 PM
Well said, Seye. It's the fat cats at the top of the company and in the banking sector who are responsible for this problem, not the ordinary workers on the shop floor.

I'm facing redundancy myself during the summer and it's not a good situation to be in, but at least I know I'll get paid for the work I do in the time I have left.

When we complain about the service we get from individual staff at music outlets, we don't always know what stresses they're under, how often they've been denied opportunities for training to get the knowledge we expect of them, the pressures on them to close the deal, and so on.

--------------------
Steve Cooke
http://soundcloud.com/stevecooke


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hogberto
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Joined: 02/09/02
Posts: 430
Loc: scotland
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610372 - 30/04/08 11:25 PM
seye.

thanks for posting here.

hope things work out for you.

where's head office? it was originally in dunfermline, but i'm not sure whether they shifted it down south when they expanded out of scotland.

surely the vacuum will be filled in due course - central scotland could be left with very little indeed in the way of MI retailers - but it may take some time.

i suppose it's easy for the directors at times like this to blame the credit crunch, the impending recession etc. but as often as not it's just good old-fashioned bad management.


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Gary M
Audio Technica


Joined: 18/04/01
Posts: 985
Loc: Northwood, London
Re: Sound Control + Turnkey go into administration... new [Re: Monobass]
      #610373 - 30/04/08 11:30 PM
best of luck to all the staff that have lost their jobs. No mater what you thought of the service this is peoples lives and i hope they have no trouble in finding work.

I think this will have a massive impact on the industry, Many people knew something was brewing its just a shame that it had to go like this. I suppose as they say 'watch this space'

p.s. surprised its not in SOS news.


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Jamus



Joined: 17/02/08
Posts: 20
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610377 - 30/04/08 11:41 PM
Hey dude

Sorry to hear you lost your job.

I work for Sound Control too and was one of the lucky ones. Although none of us who are left are not out the woods yet. After the company or shop is sold we could still be out.

This whole thing sucks bug style. Anyhoo just to add to what you were saying, the following scottish stores are still open:

Edinburgh
Glasgow City
Dunfermline

We lost a few stores up here.

I hope you guys take heed of what my man ubove said. Folks have lost there jobs. Folks with families and mortgages.

And whether you liked the stores or not, the UK has a lot less music retailers in it now.

An spare a thought for Pat Kelly, who started up Sound control with his mate and built it up from a small store to the UK largest music retailer........

He was told to clear out his desk and get out!!!!!


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Jamus



Joined: 17/02/08
Posts: 20
Re: Sound Control + Turnkey go into administration... new [Re: comradec]
      #610378 - 30/04/08 11:43 PM
Quote comradec:

Well said, Seye. It's the fat cats at the top of the company and in the banking sector who are responsible for this problem, not the ordinary workers on the shop floor.






Actually the bank pulled the plug on Sound Control. The directors were trying to get private investment in to save jobs but the Bank of Scotland pulled the plug on them before they could


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Seye



Joined: 30/04/08
Posts: 8
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610380 - 30/04/08 11:47 PM
Thanks guys.

The head office is still in dunfirmline but is now shut.

The administrators will be setting up the contact points tommorrow (apparently).

comradec - sorry to hear about your situation.

I'd like to defend the staff. A lot of them are very knowledgable. We actually used to recieve a lot of email commendations from customers who were extremely happy with the service. Unfortunately people tend to remember the one bad member of staff in a store rather than the 10 good ones.
Some of us were active in the industry and knew the products because we used them every day outside of the stores. In our store alone we had 2 recording engineers, 2 live engineers, 2 DJ's and several musicians.

We were always under a lot of stress, our jobs entailed far more than any other I've come across in the retail sector. These are not just monkeys stcking shelves. When you place an order they usually have to chase it through every stage from getting a price to arranging delivery.

Jamus - Good luck mate. Not much more I can say.


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Seye



Joined: 30/04/08
Posts: 8
Re: Sound Control + Turnkey go into administration... new [Re: Jamus]
      #610383 - 30/04/08 11:55 PM
Quote Jamus:

Quote comradec:

Well said, Seye. It's the fat cats at the top of the company and in the banking sector who are responsible for this problem, not the ordinary workers on the shop floor.






Actually the bank pulled the plug on Sound Control. The directors were trying to get private investment in to save jobs but the Bank of Scotland pulled the plug on them before they could



In all fairness I think all of us inside the company know exactly where people should be pointing fingers. I wish there was a way of punishing people for corporate negligence leading to the collapse of a company.

We all knew where the company was haemmorraging money. We kept saying it but no one listened. There was no excuse for things getting this bad.

Its a bit late for that now though. I cant see the point in dwelling on it.

As I say, I'd just like people to spare a thought for all those who have been made redundant with no notice.


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leslawrenson



Joined: 14/03/06
Posts: 2509
Loc: Outside Mothercare
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610392 - 01/05/08 12:15 AM
This is all very sad indeed.

I, too, got one of those "poaching" emails from Dolphin. It does seem a little insensitive but, as Steve says, that's business!

It would be nice to think that Dolphin will employ some of those who have lost their jobs.


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Jamus



Joined: 17/02/08
Posts: 20
Re: Sound Control + Turnkey go into administration... new [Re: Seye]
      #610394 - 01/05/08 12:21 AM
Quote Seye:


In all fairness I think all of us inside the company know exactly where people should be pointing fingers. I wish there was a way of punishing people for corporate negligence leading to the collapse of a company.

We all knew where the company was haemmorraging money. We kept saying it but no one listened. There was no excuse for things getting this bad.

Its a bit late for that now though. I cant see the point in dwelling on it.

As I say, I'd just like people to spare a thought for all those who have been made redundant with no notice.




Yup a whole load of bad decisions!!!!

And as an in joke... the legand continues!!!!!

That was a joke bringing that stuff in. and so many other stuff.

Cheers Paul!!!!


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Jamus



Joined: 17/02/08
Posts: 20
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610395 - 01/05/08 12:21 AM
And yeah


the main thing is the staff, the families and anyone else effected.

Spare a thought


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colink



Joined: 30/01/07
Posts: 8
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610396 - 01/05/08 12:42 AM
I'm very sad to read this. I've never had less than exceptional service from Turnkey via mail order, or Sound Control in person. Dolphin have been terrible.

I've been using SC in Edinburgh since the mid 80s and before it arrived here had been over at the Dunfermline store. The staff have always been friendly and helpful with a willingness to do deals to match online prices.

For anyone who doesn't know, or who would be interested, Pat Kelly worked with the Skids and it was the lack of a decent guitar and tech shop that led to Sound Control coming about. Set up to fill a hole in the market and did so exceptionally well.

Edinburgh has just lost one guitar shop, Live Music, in the last few weeks along with a great guitar tech guy so I am hoping SC hangs in in Edinburgh. Other than that we've got precious little left. An end of an era if they go and I'm not about to start buying guitars over the internet that I can't try out in person first so no idea what I'll do.


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Steve Hill
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Joined: 07/01/03
Posts: 13140
Loc: Oxfordshire
Re: Sound Control + Turnkey go into administration... new [Re: comradec]
      #610411 - 01/05/08 06:40 AM
Quote comradec:

Well said, Seye. It's the fat cats at the top of the company and in the banking sector who are responsible for this problem, not the ordinary workers on the shop floor.




Possibly, but the CEO also lent the company £5 million of his own money at a derisory 2% to try to keep it going. He'll have lost that (as well as his job).

But yes, all the employees deserve some respect and sympathy: even those not made redundant must be in a very uncertain position.

--------------------
Dynamite with a laser beam...


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Boston Green



Joined: 21/09/07
Posts: 408
Loc: East Sussex
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610413 - 01/05/08 07:15 AM
I've had various crap experiences with Turnkey, I won't go into them again.

Over the last month though i've had to do alot of equipment purchasing for my new PA Hire company, I spread it around to save some ££'s here and there, and because of stock I ended up making quite a few purchases from Turnkey (despite my better judgement).

I have to say, all these recent web-buys went very well. A few glitches ...

Ordered a couple of sm58's (with switches), they only had one ..... so didnt send any. I phoned and the web order guy was very helpful, understood my frustration, agreed that the warehouse should of at lease sent the one. They ended up sending one with and one without the switch, and some Neutrik XLR as compo - sorted.

Ordered a 4u Gator case, they emailed me to say it was out of stock, they sent me a 6u as replacement at no extra charge - sorted.

I have to say the web order staff have been very helpful in dealing my recent purchases and problems ......

Hehe, and sounds like I got lucky, as the last web order item I was waiting on (my comp/gate/limiter) arrived yesterday

Can I claim a prize for the last box Turnkey Web shifted ?

--------------------
www.BandSoundHire.com
PA Hire in Brighton, Sussex, Surrey and Kent.


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Parker Fly



Joined: 24/02/08
Posts: 558
Re: Sound Control + Turnkey go into administration... new [Re: philetaylor]
      #610417 - 01/05/08 07:49 AM
Quote philetaylor:

one interesting thing is that 3 directors resigned on 09/02/08, Raymond Miller and Alan Gavin who both held 45000 shares. Also Grahame Burgess who was their chartered management accountant and holder of 22143 shares resigned.




There is a considerable mileage in that fact, not least that Ray Miller is now running Gibson UK.


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Ian Stewart



Joined: 24/10/05
Posts: 3638
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610423 - 01/05/08 08:12 AM
I always got good service from Turnkey but have not bought anything in the last three years or so.

For me it was never so good after the renovation. It did look like one of the old electrical spare parts workshops of previous decades but it seemed to work.

It seems to me that so many companies start small, expand at a fast rate and then collapse. What is wrong with starting small and staying small?

--------------------
No longer a forum member.


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Brian Moynihan
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Joined: 14/11/02
Posts: 677
Loc: Boston
Re: Sound Control + Turnkey go into administration... new [Re: Ian Stewart]
      #610432 - 01/05/08 08:37 AM
Quote Ian Stewart:


It seems to me that so many companies start small, expand at a fast rate and then collapse. What is wrong with starting small and staying small?




I've though about this too, I think the whole nature of business education in the Western world teaches the ideal of ever expanding business. You are a failure if you simply 'maintain' a set size and service level. I guess it's connected to how the measure of success used by industry and the government is solely profit, but never anything like a greater social value or the happiness, security and job satisfaction of the staff at the business!

A funny story about 15 years ago I was working in a small office of a huge pharmaceutical company, my job was somewhere between 2 and 3 on a rung of janitor (1) to CEO (10). Me and my office pal used to talk about the company circulars they sent out every month, it seemed they were buying this company, expanding here, swallowing up this contractor here, expanding into Malaysia etc etc Even though we were small fish, we used to both say that the place only had a few years left before it went bust, because it was expanding like a balloon, even though all the announcements kept saying how good the business was doing. About 4 years later we'd both left for other places, but I couldn't help but chuckle when I received legal documents to sign for cashing in my shares as the company was being dissolved by the administrators.


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Paradigm X
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Joined: 25/01/04
Posts: 260
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610437 - 01/05/08 08:55 AM
For those of those made redundant, you have my sympathies.

It happened to me once, literally turn up to work one day and found out company bust, no job.

You can talk to the department of trade and industry (DTI). I managed to get a months wages (or most of it, was a while ago now) from them due to the circumstances, and a tax/NI break too. Have a look on their website or ring them up.

Hope thats useful.


Regards

Ben

--------------------
http://www.paradigmx.com


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Steve Hill
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Joined: 07/01/03
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Loc: Oxfordshire
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610441 - 01/05/08 09:03 AM
For employees, start here , although the administrators should have dished out the usual (and actually quite helpful) government leaflets.

Subject to the £330p.w. limit, employees' claims (including any arrears of holiday pay etc) are guaranteed by the government.

--------------------
Dynamite with a laser beam...


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Mike Craig
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Joined: 05/10/03
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Loc: Norwich (A Fine City)
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610442 - 01/05/08 09:07 AM
From Turnkey's website....

_________________________________

Apr 30 2008

No orders can be placed on this website.



Please note:

John Reid and Bill Dawson of Deloitte, the business advisory firm, have been appointed Administrators of Sound Control Holdings Limited (“Holdings”) and certain of its subsidiaries (“the Group”) following applications to the courts by the Group’s Directors.


The joint administrators manage the affairs, business, and property of the company, for the duration of the administration.

The joint administrators act as agents of the company, and do not personally adopt any contracts that may have been entered into by the company, prior to their appointment.


The Group operates from 26 stores across the UK, under the brand names Sound Control, Media Tools, Turnkey and Soho Sound House.


The Group has been impacted by increased competition from the internet, and the directors had been pursuing a strategy to sell the business. This did not prove successful and accordingly they sought the appointment of John Reid and Bill Dawson as Administrators.

Following a review of the Group’s operations the Administrators have made the difficult decision to close 10 of the Group’s trading locations and bring to an end its telesales and internet sales activities.

“The Administrators welcome interest in the business and assets of the Group and are already in discussions with a number of interested parties to explore a possible sale.

The Administrator will continue to trade the remaining 16 stores, selling high quality musical instruments to the public.


The Group's head office is based in Dunfermline and has various trading locations throughout the UK.


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Seye



Joined: 30/04/08
Posts: 8
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610451 - 01/05/08 09:27 AM
Thanks for all the info and good wishes

From Turnkey...
Turnkey store, and the following Sound Control stores remain open for business:

Birmingham
Bristol
Edinburgh
Glasgow City
Leicester
London
Manchester Salford
Norwich
Sheffield
Dundee
Newcastle
Stockton
Stoke
Dunfermline



Unfortunately the following stores are now closed.

Derby
Glasgow West
Hull
Kirkcaldy
Leeds East
Manchester City
Milton Keynes
Nottingham
Preston
Southampton

However I'm pretty sure that Newcastle is shut though so that might not be quite right.


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Jez (mahoobley)
monkey


Joined: 21/03/03
Posts: 2212
Loc: East Midlands
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610452 - 01/05/08 09:31 AM
Wow, this is a shock.

I worked for Sound Control on Oxford Street for almost a year up until about two years ago. It was weird going back a few months ago to find most of my friends who had worked there had all left rather suddenly due to some rather odd changes. I was also a bit surprised when calling my local store recently to order something to find they couldn't transfer stock from other stores any more!

I'm glad to hear the people I got on with most there have already managed to find new jobs before this all happened. I just hope the two old bosses of mine who moved over to Turnkey get out of this ok.

--------------------
http://www.jeremycorbett.co.uk


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Skyline
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Joined: 05/09/02
Posts: 345
Loc: UK
Re: Sound Control + Turnkey go into administration... new [Re: Seye]
      #610455 - 01/05/08 09:45 AM
Quote:

In all fairness I think all of us inside the company know exactly where people should be pointing fingers. I wish there was a way of punishing people for corporate negligence leading to the collapse of a company.

We all knew where the company was haemmorraging money. We kept saying it but no one listened. There was no excuse for things getting this bad.





As a matter of interest, what was the problem do you think? I'm a Chartered Accountant and have a good understanding of these things, and curious as to how an organisation can collapse when the market was ok, e.g. guitar sales have been enjoying a boom the like of which no one has seen in decades.

Corporate collapse is often the result of many factors but often with one big one sticking out from the rest. Examples:

(i) Over-trading, i.e. expanding by acquisitions funded from large bank loans, and if sales take a slight downturn cash flow slows and can't service the loan repayments.
(ii) Owners taking too much out of the company in the form of salaries, cars, dividends.
(iii) Poor buying decisions with stock then having to be chopped out at inadequate margins.
(iv)Poor and/or late management information leading the owners to not understand that gross profits are not covering ballooning overheads.

Personally I never used Sound Control because whenever I read their mags/flyers the prices always seemed a tad high to me.

As for Dolphin, yes I've had the email which is fair enough, but I stopped using them as I bought from them on two occasions and on each occasion my credit card was defrauded shortly after and I had to have new ones. I'm not saying it was anything to do with them but I'm not taking the chance again.


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Steve Hill
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Joined: 07/01/03
Posts: 13140
Loc: Oxfordshire
Re: Sound Control + Turnkey go into administration... new [Re: Mike Craig]
      #610471 - 01/05/08 10:32 AM
Mike - that's the standard bumph which ought to be on the website (and every invoice, order, blah blah blah). The Turnkey site makes clear they are not accepting online orders.

I'm wondering why it's not repeated on Sound Control's site, which appears in all respects to be in "business as usual" mode at the moment (although I have not tried placing an order to test this theory!). The Deloitte press release says they are suspending internet sales.

The Carillon site is still down.

--------------------
Dynamite with a laser beam...


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pazzle



Joined: 01/05/08
Posts: 1
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610476 - 01/05/08 10:46 AM
Firstly, my sympathies to those left out of a job...I've worked in music retail for ten years. This situation has been on the cards for years though. The 21st century business model of box-shifting massive quantities on tiny margins was never sustainable. The 'Tesco mentality', driven by a desire to capture the whole market, is destructive and in the long term, bad for consumers. It damages the business infrastructure established over many years of local music retailers, who offer close-to-home service and advice. I wonder how much advice I've given, how many demos that I have personally done, have resulted in a sale for Sound Control or Turnkey. (Try asking a website twenty questions to identify which product is right for you.)
We have long suspected that certain individuals at the top of these companies are willfully running their businesses into the ground, knowing that in many cases their liability will be 'limited'. The knock-on effect of this particular event will be significant, for consumers, retailers and suppliers.
Suppliers may not be able to recoup what they are owed, and this might be passed on to the rest of the industry. Customers who have recently purchased from Sound Control or Turnkey, or those who do so in the next three months, may find themselves having to deal directly with the manufacturer if they have problems with their goods.
If people use small independent retailers the money they spend stays in the local economy and circulates, benefiting everyone in the community. Buying from large corporate organisations benefits a very small number of fat cats.
Considering the current economic climate, I fear that other companies operating similar business models could soon suffer the same fate as Sound Control.


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The Red Bladder



Joined: 05/06/07
Posts: 2318
Loc: . ...
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610479 - 01/05/08 10:49 AM
A company is insolvent if liabilities (excluding equity capital) exceeds its assets.

Knowing what those liabilities and assets are from day-to-day and keeping them in healthy balance, is one of the core tasks of management.

There has been a trend in the UK for quite some time, for the more 'creative' of accountants to be able to take a generous view of what could constitute an asset and an ever narrower view of what is and is not a liability.

At the same time, management of UK and US companies have lost sight of the classical goals of the firm, seeking to expand their corporations, at the cost of making a profit. (Galbraith 'The New Industrial State').

The usual method for growth has been to raise new equity capital by issuing shares. In exchange, the new shareholders want to see either an increase in the value of their shares, or a return on their investment in the form of dividends. If the company has a track record of diluting the value of individual shares by the issuance of more and more stock and it also cannot pay dividends because it has chosen growth over profit, investors are unlikely to be banging down the door, chequebooks in hand.

To get around this, UK companies have been turning to the banks for credit. This of course, has the very obvious effect of reducing profit even more.

The demise of Sound Control is a classical example of a small company seeking to grow in an already overcrowded market, where potential for growth is just not there. To do this through debt is to make your demise inevitable.

The price sensitivity (technically known as price elasticity of demand) for MI is about 2. That is to say, a 1% increase in price leads to a 2% decrease in sales.

The bad news is that most turnover is being made with digital equipment and software and here price sensitivity is far greater and can in some sectors be as high as ten. Rather like fuel, you only have to be slightly more expensive to sell almost nothing.

The competition to UK MI retailers is no longer the other guy on the High Street, but eBay, Dolphin, Music Store and Thomann. Here is where the price is set and it is pretty much set in stone for the retailer. To charge more is to sell nothing.

If the price is a given, then the only way to generate more profit is to cut costs.

This is done, firstly, by buying directly in Shanghai and Taiwan from the manufacturer and also buying directly from US, UK and German manufacturers.

Secondly, all costs such as wages, credit, rents, etc., have to be parred to the very bone.

In the UK, retailers of all types have relied too long on high mark-ups in rented shops by publicly owned companies, loaded with debt. In food retailing, the UK has been a very happy hunting ground for Lidl and Aldi, both totally private businesses, using low mark-up and always owning their shops outright.

Both Lidl and Aldi have been growing slowly across Europe for the past 50 years. You cannot become a shareholder in these companies, because they are owned outright by one person. The same applies to Music Store and Thomann. Each is owned by one person.

The owner of Music Store even had an Aldi sign in his office. That was his business model. Once when accused of being a box-shifter, he laughed and said "Well, do you expect me to not shift them then!"

Sound Control seemed to abuse the all the rules of business and therefore the market is healthier and better off without it.


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Legacy..F.Yeah!



Joined: 01/05/08
Posts: 3
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610481 - 01/05/08 11:08 AM
I was, up until yesterday, Administrator for Soundcontrol [Forum Admin: for clarification, this poster is NOT to be confused with the offically appointed Administrator for Sound Control, which is Deloitte] and I have to say it was the toughest challenge i've ever faced.
Because everything was controlled by the Head Office in Dunfirmlaine who were quite often incompetent it was very difficult to correct mistakes that were being made, our Management were constantly battling to get the Stocks required, customers were being let down because Orders werent being placed or Transfered quick enough to the Customer.
I feel (to blow my own trumpet) that they just made the one person that gave it all the Customer Service/ discipline needed, the Boot...it goes to show that they really do not have a clue what they are doing, I have to point out that Sound Control Staff go outside the Boundaries to help the Customer whilst being paid a very small amount in doing so so they are not to be blamed.

Even the Location Managers have no choices as far as i'm concerned, the whole thing is doomed from today..which is a shame for the customer as prices will now increase!

In the meantime I may lose my flat & was due to be married whilst some big boss is escaping all this on a golfing holiday..think on and here's hope for the small business!

Edited by Forum Admin (03/05/08 12:27 PM)


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pups



Joined: 01/05/08
Posts: 1
Loc: uk
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610482 - 01/05/08 11:15 AM
They were contempories of ours at TSC/Computerwarehouse for 21years sad to see them go.

We are currently recruiting for our music division so if there are any product specialists/sales people looking for jobs please contact

Mark Mccormack on 0208 400 4327 or send cv's to

mark.mccormack@computerwarehouse.co.u k


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Steve Hill
member


Joined: 07/01/03
Posts: 13140
Loc: Oxfordshire
Re: Sound Control + Turnkey go into administration... new [Re: Legacy..F.Yeah!]
      #610484 - 01/05/08 11:21 AM
I assume you don't mean you are/were the court-appointed administrator from Deloitte (!). Commiserations anyway. But retail prices will not go up, especially on the edge of a recession with retailers in all sectors reporting reduced sales. We're just seeing a shake-out, which happens in straitened economic times, and the ones with the weaker business models fail first.

There's some sort of Darwinian logic about it, which leaves the sector as a whole stronger and more competitive. It was ever thus. That's not to take away anything from the victims in these situations.

--------------------
Dynamite with a laser beam...


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directresolution.com



Joined: 13/09/06
Posts: 594
Re: Sound Control + Turnkey go into administration... new [Re: Steve Hill]
      #610486 - 01/05/08 11:28 AM
Quote Steve Hill:



There's some sort of Darwinian logic about it, which leaves the sector as a whole stronger and more competitive. It was ever thus. That's not to take away anything from the victims in these situations.




I thought the goverment (tax payer)comes in and start throwing money at you

I too am an ex staff member (who isn't) mixed feelings. Quite a shock though.

--------------------
www.directresolution.com
home of the DARC audio computer


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The Bunk



Joined: 29/12/07
Posts: 701
Loc: Surrey
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610491 - 01/05/08 11:33 AM
First of all, my sympathy and best wishes for all the staff that may lose out on this.

A great deal of what's been said above has talked about the figures, the numbers, the accountants...and a little, but not enough IMO, about the people, particularly front-of-house. And that seems sadly typical of a way a lot of businesses are run today, despite what various company "mission statements" may say. My experiences in Turnkey, whilst never unpleasant, usually deterred me from going there; I'm a bit of a musical novice and always felt uncomfortable in there. That is not necessarily the fault of the staff in there. It is a management training issue.

Sound Control was generally better but whenever I went in there, it was like a new set of faces every time. So there was, I presume, high staff turnover. That's not a good sign, but my guess is that accountants (and no offence intended to any here who are) ain't looking at staff turnover, they're looking at bottom lines.

The store that I go to to buy my gear now is probably overstaffed; it almost certainly is if you go by the accountant's preferred ratio of wages being 50% of turnover. However, in the several years I've been going there, I see pretty much the same faces, always get served promptly and without any condescension whatsoever. I might pay slightly more than elsewhere, but I'll go back, time and time again. Because I like the people there and shopping is a pleasant experience.

I work in a customer-focused industry (health and fitness), and if accountants started running the place, we'd soon fail. Our particular strength is our staff, especially front-of-house and front line staff; our wage bill is over the top, but we make a profit, hit budgets, and keep the punters coming back. There's a perfectly adequately equipped competitor down the road from us; people choose to stay with us because of our staff.

Don't get me wrong, this is not a go at accountants!! But, personally, while the financiers obviously have their place, there is too much reliance on them. We are fast forgetting that people really can make a difference. Look at Terminal 5; the whole fiasco started because they forgot the most important resource they had - their staff - couldn't get into the damn building in the first place on the first morning. They just hadn't thought that far down the chain.

It really is time we stopped talking numbers and talked people.

Edited by HandM (01/05/08 11:36 AM)


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Imran500



Joined: 25/03/08
Posts: 1038
Re: Sound Control + Turnkey go into administration... new [Re: Legacy..F.Yeah!]
      #610495 - 01/05/08 11:45 AM
Quote Legacy..F.Yeah!:

I was, up until yesterday, Administrator for Soundcontrol and I have to say it was the toughest challenge i've ever faced.
Because everything was controlled by the Head Office in Dunfirmlaine who were quite often incompetent it was very difficult to correct mistakes that were being made, our Management were constantly battling to get the Stocks required, customers were being let down because Orders werent being placed or Transfered quick enough to the Customer.






I totally believe that somewhere higher up there was some serious incompetence. If you are working on the frontline you are bound to be giving loads of feedback on stock problems - after that it's up to the bods in charge to sort it.

I was a bit harsh on them in my earlier post, but to re-iterate most of the staff were really helpful and knew exactly what they were talking about. It's clearly not an average retail job and they needed to know a fair deal to offer a good service.

The reason I used to go back there despite the problems I encountered was because it's nice to pop up to Denmark St and potter around the music shops as well pick up your gear.

The Rose Morris Pro Audio shop isn't bad but Turnkey had loads of staff all over the place, plus their starting prices were always lower than Rose Morris as well


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Skyline
member


Joined: 05/09/02
Posts: 345
Loc: UK
Re: Sound Control + Turnkey go into administration... new [Re: Legacy..F.Yeah!]
      #610496 - 01/05/08 11:45 AM
Quote Legacy..F.Yeah!:

I was, up until yesterday, Administrator for Soundcontrol and I have to say it was the toughest challenge i've ever faced.
Because everything was controlled by the Head Office in Dunfirmlaine who were quite often incompetent it was very difficult to correct mistakes that were being made, our Management were constantly battling to get the Stocks required, customers were being let down because Orders werent being placed or Transfered quick enough to the Customer.
I feel (to blow my own trumpet) that they just made the one person that gave it all the Customer Service/ discipline needed, the Boot...it goes to show that they really do not have a clue what they are doing, I have to point out that Sound Control Staff go outside the Boundaries to help the Customer whilst being paid a very small amount in doing so so they are not to be blamed.

Even the Location Managers have no choices as far as i'm concerned, the whole thing is doomed from today..which is a shame for the customer as prices will now increase!

In the meantime I may lose my flat & was due to be married whilst some big boss is escaping all this on a golfing holiday..think on and here's hope for the small business!




My deepest sympathies. The fallout from these things is very real to employees who tried hard to serve their customers despite admin issues.

It sounds like the catastrophe was not so much about a flawed business model as a dash for growth that ruptured the systems and internal communication processes that made the initial simple growth possible. One shop clones its successful model to make two, three, etc. until a step change is needed in terms of financing, IT systems, HR, etc. Many small, ambitious firms fall over at this point; when the owners and/or managers simply don't have the skills to scale all the processes up at the same pace as the growth in their personal ambitions.

One of the most crucial hurdles in rapid growth is to implement the economies of scale that come with centralising many processes to a head office, leaving the shops to perform only those tasks essential to front-end customer service, whilst at the same time retaining the 'good bits' and the spirit of the old, smaller (but no longer feasible) structure.

I hope things work out for you in new endeavours.


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Kwaidan
member


Joined: 26/06/03
Posts: 431
Loc: UK
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610505 - 01/05/08 12:00 PM
What a sad loss for Sound Control, I know Dave Hopkins and the staff at Dunfermline, they've always been great, i'm glad that store is still open, because Sound Control is the only stockist in the UK of Elektron gear, and i always get great deals too. My nearest store was Kirkcaldy and that's shut, so it's a trip to Dunfermline for me next time round when i require gear etc.


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Ian Stewart



Joined: 24/10/05
Posts: 3638
Re: Sound Control + Turnkey go into administration... new [Re: The Bunk]
      #610511 - 01/05/08 12:12 PM
Quote HandM:


It really is time we stopped talking numbers and talked people.




Excellent post HandM.

I also worked freelance for a company that stopped treating people well, with good fees, but instead brought in a tough director who bullied and insulted people into doing more work for less money, while saying she could loose all the staff and the company wouldn't suffer at all. Only the artistic director was important. She also pointed out that it was inappropriate for staff to even comment on management decisions. The company has attracted nearly a million pounds of lottery money but can't get anyone to work for them. They are also considered a company that does substandard work and few people use them.
Compare that with a company my wife has just done consultancy work with. They pay well over the rates so they get good staff and keep them.

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No longer a forum member.


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hogberto
new member


Joined: 02/09/02
Posts: 430
Loc: scotland
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610526 - 01/05/08 12:52 PM
this has made the bbc news now:

http://news.bbc.co.uk/1/hi/scotland/edinburgh_and_east/7377203.stm


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Forum AdminAdministrator



Joined: 22/07/03
Posts: 2313
Loc: Cambridge
Re: Sound Control + Turnkey go into administration... new [Re: Gary M]
      #610528 - 01/05/08 12:53 PM
Quote Gary M:

best of luck to all the staff that have lost their jobs. No mater what you thought of the service this is peoples lives and i hope they have no trouble in finding work.




All at SOS sympathise with SC staff who have been adversely affected by this recent event. That's why we are not removing the TSC job advert post from this thread, in case it helps some of you find employment.

Quote:

I think this will have a massive impact on the industry...




It WILL.

Quote:

p.s. surprised its not in SOS news.




It is now - until there was an official Administrator's press release available, it would have been wrong of us to speculate. The SOS news story is here:
http://www.soundonsound.com/news?NewsID=10049

Ian G

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SOS Gear Videos now screening on Sound On Sound TV


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ellenne



Joined: 01/05/08
Posts: 1
Re: Sound Control + Turnkey go into administration... new [Re: oggyb]
      #610535 - 01/05/08 01:08 PM
Quote:

Are we certain the Leeds branches are closing? That will be a shame, if so.




Leeds City branch on Kirkstall Road is still trading, I rang them to check.

It won't help in any practical way but I'd just like to say how sorry I am to hear about all this, and particularly for those who have lost their jobs. I've bought quite a few things from SC over the years and have always found them friendly and helpful, as well as generally willing to match internet prices if asked. Until it moved to its present site a few months ago, SC Leeds City was 5 minutes' walk from my office and so was effectively my local music shop!

I hope something can be salvaged from it.


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Legacy..F.Yeah!



Joined: 01/05/08
Posts: 3
Re: Sound Control + Turnkey go into administration... new [Re: Steve Hill]
      #610542 - 01/05/08 01:25 PM
I assume you don't mean you are/were the court-appointed administrator from Deloitte

God no!

And whether or not Prices go up or down doesn't really matter to me anyway..but they will go up! haha!

Anyway big thanks to all of you who do show sympathy to us who lost our jobs I certainly appreciate it so thanks


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JonR
member


Joined: 14/12/03
Posts: 49
Re: Sound Control + Turnkey go into administration... new [Re: Ben]
      #610545 - 01/05/08 01:32 PM
I just wanted to express my sympathy for those who are now out of work.

I have been buying kit from the Glasgow city branch for decades now and the staff were always helpful and friendly, in particular the guy who runs the bass department is a top bloke who made each visit to the store a pleasure.

John


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Kwackman



Joined: 07/11/02
Posts: 1344
Loc: Belfast
Re: Sound Control + Turnkey go into administration... new [Re: JonR]
      #610561 - 01/05/08 02:05 PM
As others have said, sympathies to those of you out of work.

I remember when Thatched Cottage Audio went bust years ago.
In the days before emails and internet (at least for us ordiary folks) they were sending out leaflets explaining multitrack recordings etc. I'd used them for years by mail order building up my home studio. They were always great on the phone and very helpful.
After months of hard thinking, I rang to order my first 8track machine, costing £1500 which was a fortune to me back then (Still is!). I rang back the next day and got no reply. I kept ringing and eventually someone answered. It was the guy who'd taken my order, and he was now telling me they'd gone bust and he was just clearing out the office of personal stuff. But, on the previous day when I placed my order, he thought something was going wrong, and God bless him, he hadn't put my order through (and hadn't taken the money) just in case. I was SO grateful the someone about to lose their job was kind enough to think of the plight of a small customer.


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