comradec
active member
Joined: 21/09/03
Posts: 1609
Loc: Stockton-on-Tees, UK
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Re: Sound Control + Turnkey go into administration...
[Re: Seye]
#610371 - 30/04/08 11:24 PM
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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
new member
Joined: 02/09/02
Posts: 428
Loc: scotland
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610372 - 30/04/08 11:25 PM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Monobass]
#610373 - 30/04/08 11:30 PM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610377 - 30/04/08 11:41 PM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: comradec]
#610378 - 30/04/08 11:43 PM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610380 - 30/04/08 11:47 PM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Jamus]
#610383 - 30/04/08 11:55 PM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610392 - 01/05/08 12:15 AM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Seye]
#610394 - 01/05/08 12:21 AM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610395 - 01/05/08 12:21 AM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610396 - 01/05/08 12:42 AM
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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
member
Joined: 07/01/03
Posts: 13140
Loc: Oxfordshire
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Re: Sound Control + Turnkey go into administration...
[Re: comradec]
#610411 - 01/05/08 06:40 AM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610413 - 01/05/08 07:15 AM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: philetaylor]
#610417 - 01/05/08 07:49 AM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610423 - 01/05/08 08:12 AM
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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
member
Joined: 14/11/02
Posts: 677
Loc: Boston
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Re: Sound Control + Turnkey go into administration...
[Re: Ian Stewart]
#610432 - 01/05/08 08:37 AM
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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
member
Joined: 25/01/04
Posts: 260
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610437 - 01/05/08 08:55 AM
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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
member
Joined: 07/01/03
Posts: 13140
Loc: Oxfordshire
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610441 - 01/05/08 09:03 AM
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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
member
Joined: 05/10/03
Posts: 592
Loc: Norwich (A Fine City)
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610442 - 01/05/08 09:07 AM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610451 - 01/05/08 09:27 AM
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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: 2179
Loc: East Midlands
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610452 - 01/05/08 09:31 AM
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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
member
Joined: 05/09/02
Posts: 338
Loc: UK
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Re: Sound Control + Turnkey go into administration...
[Re: Seye]
#610455 - 01/05/08 09:45 AM
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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
member
Joined: 07/01/03
Posts: 13140
Loc: Oxfordshire
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Re: Sound Control + Turnkey go into administration...
[Re: Mike Craig]
#610471 - 01/05/08 10:32 AM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610476 - 01/05/08 10:46 AM
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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: 2070
Loc: . ...
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610479 - 01/05/08 10:49 AM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610481 - 01/05/08 11:08 AM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610482 - 01/05/08 11:15 AM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Legacy..F.Yeah!]
#610484 - 01/05/08 11:21 AM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Steve Hill]
#610486 - 01/05/08 11:28 AM
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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: 670
Loc: Surrey
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610491 - 01/05/08 11:33 AM
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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: 887
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Re: Sound Control + Turnkey go into administration...
[Re: Legacy..F.Yeah!]
#610495 - 01/05/08 11:45 AM
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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: 338
Loc: UK
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Re: Sound Control + Turnkey go into administration...
[Re: Legacy..F.Yeah!]
#610496 - 01/05/08 11:45 AM
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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: 430
Loc: UK
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610505 - 01/05/08 12:00 PM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: The Bunk]
#610511 - 01/05/08 12:12 PM
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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.
-------------------- No longer a forum member.
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hogberto
new member
Joined: 02/09/02
Posts: 428
Loc: scotland
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610526 - 01/05/08 12:52 PM
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Forum Admin
The Knower
Joined: 22/07/03
Posts: 2304
Loc: Cambridge
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Re: Sound Control + Turnkey go into administration...
[Re: Gary M]
#610528 - 01/05/08 12:53 PM
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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
-------------------- SOS Gear Videos now screening on www.SoundOnSound.tv
SOS Podcasts
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ellenne
Joined: 01/05/08
Posts: 1
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Re: Sound Control + Turnkey go into administration...
[Re: oggyb]
#610535 - 01/05/08 01:08 PM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Steve Hill]
#610542 - 01/05/08 01:25 PM
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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
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Re: Sound Control + Turnkey go into administration...
[Re: Ben]
#610545 - 01/05/08 01:32 PM
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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: 1245
Loc: Belfast
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Re: Sound Control + Turnkey go into administration...
[Re: JonR]
#610561 - 01/05/08 02:05 PM
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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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