Windsong International Limited (06473486): administration
- Status
- Administration ended
- Administration began
- 2018-06-15
- Administrators' firm
- Begbies Traynor
- Formerly
- Filmsgamesmusic Limited; Hallco 1577 Limited
- Incorporated
- 2008-01-15
- Location
- St James Parade
- Industry
- 46431 Wholesale of audio tapes, records, CDs and video tapes and the equipment on which these are played
Why it went into administration
- Sustained trading losses
- Loss of a key customer, supplier or contract
From the administrators' statement
The Company was incorporated on 15 January 2008 and is a wholly owned subsidiary of MBL Group PLC. It began trading in 2009, operating from the South-East of England as a distributor of audio visual entertainment products, predominately to the online and ‘bricks and mortar export market and UK internet customers. Business revenue was driven principally by high volume back-catalogue sales, to which the Company had access via its bespoke database.
The physical media market overall has been more resilient than some predicted over the last decade, however the increase in direct online purchases of physical product along with the switch to streaming and downloading of video and music has undoubtedly been a huge influence in the trend of reducing turnover and margins over the last few years. The Company's financial year ended March 2017 was the exception to the rule, as the Company benefited from an injection of sales driven by the demise of various high profile artists. However the following financial year, and continuing into the current year, saw a material decline in sales performance again. Efforts had been made in prior years to move with the trend of increased direct consumer sales by increasing the trade to online based customers but unfortunately the increased sales to one key customer caused various trading difficulties over the last twenty four months, as accounting queries
-3and unprecedented returns ultimately led to stock and cash flow issues. The steady decline in turnover from various regions, customer deductions and a significant increase in property rental costs have been the three major contributing factors in the business facing administration.
Administrators' statement of proposals (2018-08-22) · Companies House register