GAK sells its stock and website to Gear4music for £2.4 million after entering insolvency – Guitar.com

Gear4music says customers who placed orders with GAK prior to the insolvency will not have them fulfilled.
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Brighton’s GAK – a pillar of the UK music retail industry – has faced weeks of speculation after closing its store and shutting down its website in March.
As rumours of the retailer’s fate swirled, industry spectators spotted a listing on UK business marketplace Business Sale Report, advertising a “Musical Instrument Retailer and Supplier” seeking a “fast sale”.
Now, it’s been revealed that UK-based online music gear marketplace Gear4music – which also has a physical store in York – has purchased GAK’s remaining stock, “together with certain intangible assets including websites, trademarks, and commercial data”, per a statement on its website.
Gear4music goes on to state that it has not acquired “any part of GAK’s trading business, nor any other assets or liabilities, and has no current plans to use the GAK trading name”.
It says that while its assets, stock, branding and website has been sold to Gear4music after GAK entered insolvency, GAK “still legally exists and remains responsible for its liabilities, but may not have funds to meet them”.
Any customers that placed orders with GAK prior to the insolvency will not have their orders fulfilled, although G4M says they may be able make claims as unsecured creditors in the insolvency. Similarly, warranties issued by GAK are likely void, with Gear4music having no obligation to honour them.
The GAK website now redirects to Gear4music’s homepage. According to The Business Desk [via Guitar World], Gear4music’s shares went from “19 per cent to 139.9p in early trading”. The cost of the stock was around £1.8 million plus “certain intangible assets including websites, trademarks, and commercial data [for] £0.6m”.
Speaking to Brighton-based news outlet The Argus, GAK store employee Connor Wyatt says staff were told the business was going into administration and on 7 April, they would be made redundant.
GAK – which stands for Guitar, Amp and Keyboard – started in 1992 as a small market stall by Gary Marshall. It later expanded into a brick-and-mortar store that became something of a landmark in the Brighton city centre, and later as an online retailer.
Some big shifts have happened in the world of musical instrument retail as of late; earlier this month, Dutch retailer Bax Music was declared bankrupt.
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