Second Sony Centre owner calls in administrators
Future of 16 Sony Centre stores hangs in the balance as owners placed in administration
The operators of 16 Sony Centres in the UK have been placed into administration, casting doubts over Sony's future in the high street retail market.
The hardware vendor confirmed to ChannelWeb that Sony Centre operators Headsun and Bascam have been placed into administration, with insolvency practitioner RSM Tenon overseeing proceedings.
"RSM Tenon will be examining options for the businesses and the stores moving forward," said Sony in a statement.
"All Sony manufacturer product warranties related to the companies' operated stores will be honoured."
However, ChannelWeb understands that two of the companies' stores in Uxbridge and Windsor have already ceased trading.
According to Companies House, Headsun and Bascam had been trading as Shasonic UK and Shasonic Centres, respectively, until last month. Both companies also share several directors.
Bascam's most recent set of financial results show the company made a loss of £36,727 against a turnover of £12.4m in the 12 months to 30 June 2010.
In contrast, the company's 2009 turnover was £12.1m and the firm made a profit of £116,500.
The accompanying report also states that the directors were "pleased with the results for the period, given the prevailing economic climate".
News of Headsun and Bascam's financial difficulties follows on from ChannelWeb's report last September about Sonex Communications, which operated 14 Sony Centre stores, hitting the skids.
Speaking to ChannelWeb, Corin Birchall, owner of retail and marketing consultancy Kerching, said the economy, coupled with Sony's product mix, could have been factors in the firms' troubles.
"The [Sony] brand [as a whole] seems to be struggling to connect with people. Its products are not considered to be particularly aspirational and it has struggled to make a real mark in the tablet and e-reader market," said Birchall.
When the economy is flat, it is the "cheaper" or "aspirational" brands that seem to do best, he added.
"People are even more inclined [during a recession] to shop around for a good deal on electronics, because it is such a big investment for them," he explained.
"The value brands and the ones making products that really capture the imagination, such as Apple, usually do great. This puts the squeeze on brands such as Sony and Panasonic that are more expensive and, perhaps, less aspirational."