Amato part 2
So I’ve been talking to my friend who works (worked) at Amato Distribution and he told me that the administrator will come in next Monday so that seems to be the last day for most people at Amato. It was also reported in the press today.
In addition to the closing of Amato being very difficult to all employees of the company it has also very big effects on the labels it was distributing. Like when the likes of 3MV went bust there are large sums of money outstanding to the labels and this is probably money that those labels will never see. So if you are a small dance label and Amato was your exclusive distributor there was very slim chances to see any money any time soon. Lets just hope that everyone can get their stock (as in their CDs and records) back as soon as possible so all labels can get back to work as soon as possible.
From what I’ve heard the company has not been 100% honest to the employees about the financial situation so this bankruptcy has come as a surprise to everyone. It looks like everyone was fairly optimistic after Unique has bought Amato and the office moved to East London.
But no one is really surprised about news like this in this changing music industry.
Tags: amato distribution, bankruptcy
November 17th, 2007 at 3:48 am
Amato Distribution bites the dust!?
Reports surfaced that UK-based Amato Distribution, one of the most respected independent distributors in the UK and across the globe, will be closing their doors and filing for liquidation. Over the years, Amato has been providing global marketing and …
November 20th, 2007 at 1:46 pm
[...] there’s some industry comment over at Jonas Woost’s heute:pop:blog [...]
November 27th, 2007 at 6:12 pm
They are never honest with their employees because if word gets out that they might go bust, then they have no chance of collecting any receivables that could prevent it happening.
This is standard procedure, not really intentionally deceptive.
I am not thrilled with it, but perhaps this will help you to understand it.