Allans Billy Hyde went bust with debts of more than $40 million. Picture: Tim Carrafa Source: Herald Sun
MORE than 600 people have been left jobless and 25 stores will close after the demise of landmark music retailer Allans Billy Hyde.
A fire-sale of stock has already begun after receivers revealed efforts to find a buyer had failed.
And in a blow for customers, gift vouchers and deposits are now worthless.
Record industry veteran Bill Duff said closure of the Melbourne-founded company - which goes back about 160 years - was a huge blow for music lovers.
"It's awfully sad," Mr Duff said.
"When I think back, they were paragons of the music business here in Australia.
"It's hard to believe."
Independent retailer Steve Kelson, who runs Syndal Music, said he believed that the company had become too big to respond to a changing marketplace and worsening economy.
The company was formed following the merger of Allans Music and Billy Hyde Music two years ago.
"They were a bit like the Titanic," Mr Kelson said.
"It's very hard to shift course quickly. Realistically, the fundamentals were wrong way back."
Internet shopping had aggravated the business's problems.
"People use the stores as a showroom to shop online," Mr Kelson said.
Australian Music Group Holdings, the parent company of Allans Billy Hyde, has debts of more than $40 million.
About 80 employees were made redundant after the business was put into receivership two months ago.
More than 500 remaining employees will lose their jobs over the coming weeks. About half of all employees worked at eight stores in Victoria.
"The loss of jobs is disappointing, but we exhausted all avenues and there is no other way forward for this business," receiver Brendan Richards said.
Bargain hunters crowded the flagship Bourke St store, where items were being discounted by up to 60 per cent.
Jazz muso Steve Csorgo, on the hunt for a new amplifier, said he would miss the store, but he also shopped online.
"It's a lot cheaper - but it's always good to look," he said.
Karen Shamieh saved $160 off a bass guitar and amp for her 13-year-old son.
The final store is expected to close early next month.
Employees will receive help claiming their entitlements through the Federal Government's protection scheme.
Four franchise stores, including one at Shepparton, are unaffected but must change their name.
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