Australian Music Group — the parent company of musical instrument retailers Allans Billy Hyde and Gallin’s Musician’s Pro Shop — has been declared insolvent during a court case involving the Australian Taxation Office (ATO), and will be liquidated.
On Friday, 20th July, the Federal Court Of Australia ordered Australian Music Group be wound up in insolvency, and the Deputy Commissioner Of Taxation’s costs ($3,035.00) be reimbursed.
Ferrier Hodgson’s John Lindholm has been appointed liquidator of the company, as well as the voluntary administrator alongside his colleague George Georges.
In a statement to Music Feeds, Ferrier Hodgson Director Paul Harlond said, “We confirm that current employees will continue to be employed and paid by Australian Music Group (HR) Pty Ltd whilst we seek to finalise a sale of the Allans Billy Hyde and Gallin’s Musicians Pro Shop businesses.
“Employees that had ceased to be employed prior to our appointment will now be able to submit a claim for their outstanding entitlements with the Federal Entitlements Guarantee Scheme. We will be writing individually to these former employees in the coming days.”
In June, the ATO told Music Feeds that while it couldn’t comment on the tax affairs of Australian Music Group for legal reasons, it undertakes insolvency proceedings “to prevent [a taxpayer] from gaining an unfair financial advantage over the majority that do pay and to protect other creditors including employees and suppliers”.
“Before and during insolvency proceedings the taxpayer has multiple opportunities to present their case, resolve the outstanding tax issues or make acceptable payment arrangements,” a spokesperson said.
“Ultimately the court decides if a taxpayer is insolvent and whether a winding up order or a bankruptcy order should be made in the circumstances.”
Allans Billy Hyde closed its stores in Alexandria (NSW), Southport (QLD) and Windsor (QLD) in June. Photos of stock being loaded onto a truck at the Alexandria store on Saturday, 9th June can be seen below.
Australian Music Group last went into receivership in August 2012. At the time, private investors were owed around $27 million, and employee entitlements were estimated at $3 million.
In November 2012, Con Gallin’s Australian Musical Imports (AMI) purchased AMG and reopened a number of Allans Billy Hyde stores. AMI changed its name back to Australian Music Group in 2014.
Photos: Allans Billy Hyde Alexandria Store Closure (09/06/18)
Allans Billy Hyde Parent Company Goes Into Liquidation, Following ATO Court Case - Music Feeds