Photo Credit: Proper Distribution
On Friday, Digital Music News reported that Utopia Distribution Services had entered bankruptcy proceedings in the UK. UDS landlord DP World has acquired the company’s assets in a ‘pre-pack’ administration deal. Now Proper Music is speaking out about the acquisition.
Both UDS and Utopia Accelerate (UK) Limited have collapsed, with paperwork showing that Utopia Accelerate owes more than £1 million to a variety of creditors including its Swiss parent company. UDS handled distribution for a significant percentage of major labels’ distribution of physical products sold in the UK—especially for Universal Music and Sony Music.
With Utopia’s bankruptcy filed in Switzerland, UDS no longer had the cash injections it needed to continue to maintain itself. Sources speaking with Complete Music Update state that the major labels showed no interest in acquiring UDS, which left DP World as the primary operator for the distribution business.
“We are pleased to confirm that we are taking on responsibility for full day-to-day operation of our state-of-the-art distribution center at Bicester,” DP World told Digital Music News. “This follows our recent purchase of the business and assets of Utopia Distribution Services out of administration. We look forward to working closely with our entertainment partners in this expanded role.”
Now Drew Hill, Managing Director at Proper Music Group has reached out to Digital Music News about the acquisition. “Following the bankruptcy of the Swiss entity, I had hoped to keep UDS and Proper Music Group together,” Hill tells DMN. “Whilst it’s disappointing to see the companies part ways, clients and customers of UDS can be assured that DP World intends to continue running the Bicester site and operations.”
“In the meantime, it’s business as usual for Proper Music Distribution, which will continue to deliver the usual high standards of service over the Christmas period and into the new Year whilst I consider opportunities for the future.”
Proper Music Distribution has paid $2 billion to rights holders and distributes for over 6,000 independent labels and service companies including ADA, AWAL, Believe, Cherry Red, Concord, Epitaph, FUGA, Hospital, Ingrooves, Kartel, Orchard, Redeye, RSK, Snapper, and SRD. The company collectively represents 15% of the UK physical recorded market.