KEY POINTS:
Wellington's Real Groovy music store, part of the nation's biggest retail chain selling new and second-hand music which went into receivership recently, is back in business.
The Wellington store reopened yesterday after it was bought from the receivers by long time manager Mark Thomas.
Real Groovy Records went into receivership earlier this month, with Auckland receivers, John Cregten, and Andrew Mckay, of Corporate Finance Ltd, taking control of the Auckland, Wellington, Dunedin and Christchurch shops.
Mr Thomas declined to comment on the price paid for the business.
He said all staff had been retained and everyone was very excited."
The store has resumed redeeming and issuing credit notes and vouchers and buying stock.
He said existing suppliers had been very supportive.
Improvements were planned for the business but the first priority was to rebuild stock levels.
Mr Thomas said he understood talks were continuing over a sale of the Christchurch store.
At the time of the receivership managing director Chris Hart said the receivership was a result of problems he signalled in July, when he said a bad foreign exchange deal had left the 28-year-old business in need of capital.
He put the business up for sale after his business partners said they wanted to pursue other interests.
Some music commentators have pointed to the arrival of Australian chain JB Hi Fi in New Zealand which had triggered a price war between it and The Warehouse as a factor in Real Groovy's problems.
Both chains often sold music for cheaper than Real Groovy could buy it.
But new sales had been only 28 per cent of the Real Groovy, which relied most on second-hand sales, where the main competition was Trade Me.
- NZPA
