Music retail and distro hit hard this month as Woolies and Pinnacle collapse.

High street music retailer Woolworths has now officially launched a closing down sale.
Administrators Deloitte hadn't previously positioned the offer as such, implying they were still hopeful a buyer would be found and the majority of Woolworths 815 stores would remain open. While Deloitte say they continue to look for a buyer for the retail chain, the fact the sale has become a 'closing down sale' suggests they are increasingly pessimistic about finding one. It's thought some stores could close before the end of December.

There is currently no word on whether buyers are coming forward to acquire Woolworth’s entertainment distribution company eUK.
Speaking of which, this news comes only days after independent distribution company Pinnacle Entertainment went into administration.

A notice was posted on the website of parent company Windsong Holdings on 3rd December reading: "David Harry Gilbert and William Matthew Humphries Tait were appointed Joint Administrators of Windsong Holding Ltd and Pinnacle Entertainment Ltd on 3rd December 2008. Please note that the joint administrators act as agents of companies and without personal liability".

When eUK went into administration several weeks ago this threatened the supply of mainstream releases to the supermarkets and high street stores like Zavvi and WH Smith. The collapse of Pinnacle will impact more on the bigger independent record companies because it specialised in the Independent sector.

Of course, 2008 has not been a good year for music distribution. As a sector already struggling on the back of slumping CD sales is now subjected to the full force of an economy in decline. Smaller distributors like Amato and Goya collapsed in late 2007 and last week eUK called in the administrators. Its collapse is widely regarded to be the result of problems at sister company Woolworths.

There is no doubt that this is sobering news for everyone working in the retail and distribution sectors of music and 2008 has undisputedly been a tough time for all concerned.

Have your say! Have these closures affected your business? Is this indicative of further turmoil to come in the world of music retail and distro?