Utopia Distribution Services’ (UDS) warehouse in Bicester, UK, has been acquired by its owner DP World through Prepack Management.
UDS jointly launched in August 2023 appropriate groupa financially troubled company formerly known as Utopia Music, partnered with DP World. Warehouse services main tags including universal music group and sony musicalso beggars group and domino.
On Friday (December 13), UDS london high courtrevealing its appointment of administrators. DP WorldLandlords of UDS confirm that they will receive all services on the premises bicester Website formerly owned by UDS.
“DP World is pleased to enhance its entertainment offering through the acquisition of Utopia Distributed Services Ltd. We are committed to working with you to provide excellent, reliable services into the future,” DP World said in a statement to customers obtained by MBW.
“Proper music distribution The warehouse will no longer be affiliated with UDS or Bicester. dartford“.
DP World also said it was “working to integrate Bicester’s services into our wider network. While this complex and rapid transformation has brought some Faced with the challenge, we worked to minimize disruption and ensure a smooth experience.
In 2023, UDS signed £100 million ($126 million) Agreement with DP World to provide warehousing and logistics services for physical music formats in the UK.
During the warehouse launch, both parties said the Bicester site spans 25,000 block riceWill handle it 70% body music and 35% The daily processing capacity of home entertainment products sold in the UK each year exceeds 100,000 units, increasing to more than 250,000 during peak hours.
However, as Proper Group’s financial difficulties began to emerge, UDS was placed into administration, MBW It is understood that DP World has stepped in to undertake these services. Previous plans to merge Proper into Bicester, a move that would have reduced costs for the main independent brand, have been scrapped.
Drew HILLProper Group Managing Director, Leader proper distribution It is understood that the department established earlier this year will also return to Proper, which will continue to operate independently.
“I had hoped to keep UDS and Proper Music Group together following the bankruptcy of the Swiss entity,” Hill said in a statement. MBW.
“While it is disappointing to see the two companies parting ways, UDS clients and clients can be reassured that DP World intends to continue operating the Bicester site and business. In the meantime, it is business as usual for Proper Music Distribution, with continued provision over the Christmas period and into the New Year Consistently high standard of service and I am also looking at future opportunities.
collapse Utopia Distribution Services Focus on the financial issues of its parent company appropriate group. In September, a Swiss court initiated bankruptcy proceedings against the company for failure to pay legal fees.
John MitchellCEO Utopian SwitzerlandAdmission Complete Music Update (CMU) UDS has “bleeded”[ing] Money every month since purchased by Proper Group from Pre-Pack Management in September 2022”.
“The company is losing money every month. We are not prepared to continue spending half a million pounds a month to subsidize the business.
John MitchellSwiss Utopia
Mitchell said the company’s shareholders had provided the business with approx. £20 million ($25 million), expecting returns that never materialized. He added that the company was losing money £1.5 million ($1.9 million) per month, making it unsustainable.
“The company is losing money every month. We are not prepared to continue spending half a million pounds a month to subsidize the business,” Mitchell said.
Last month, UDS’s Swiss parent company was forced into bankruptcy due to unpaid bills. CHF 23,000 ($25,800), financial support for UDS ceased, Carnegie Mellon University report.
The company, under its old name Utopia, created some buzz by acquiring the following businesses: quincy jonessupported season, UK warehouse and fulfillment company new grayPublisher Centric Music Group, Absolute labeling service and Absolute permission management, and appropriate music groupthe British company later changed its name to Utopia.
“It is business as usual at Proper Music Distribution and we will continue to provide our usual high standards of service over the Christmas period and into the New Year, while I look at future opportunities.”
Drew Hill, Proper Group
However, financial difficulties soon surfaced. The company began a series of large-scale layoffs in late 2022 and divested companies such as Centric, absolute, and Rost.
A sign of Proper Group’s financial troubles emerged earlier this year, when the company told shareholders in April it needed to raise capital £6 million ($7.6 million) from them.
“We stated during the conference call that we are raising funds from multiple sources and that we need to raise €6 million from shareholders,” the company said in a letter.
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