poprocks96

the street press stuff might be over five publications, however you would think it's mainly owed to drum and inpress, yeah?

Also, how do Inpress get to the stage where they let Shock owe them $34,320. Serious question.

Very interesting article in todays EG by Ben Butler. Raises some questions about preferential treatment towards Regency considering Shock owed them $1.1 million!!!

Shock Stomped out September 3, 2010

Two key music distributors have felt the axe in recent months but musos are the ones who will suffer the sting, writes Ben Butler.

MUSICIAN Linda Johnston hasn't just lost her job. The collapse last month of Shock, the music and entertainment group that employed her in its warehouse for 10 years, has also robbed her of a close-knit community.

For 22 years, Shock's Melbourne operation has pumped out an array of CDs, records and, more recently, DVDs - but all that comes to an end next month when its Northcote warehouse will shut. The business has been sold to CD replicator Regency, which already has a warehouse in Sydney.

Johnston, who plays in Melbourne bands the Dacios and the Bulls, estimates about 90 per cent of Shock's warehouse workers are musicians. ''There was a real sense of community that made the job more enjoyable,'' she says. ''We had each other to talk to, to stimulate each other through those long days, for 10 years.''

In addition to causing the loss of about 40 jobs, the collapse leaves behind creditors owed about $4.2 million and raises questions about the validity of the Regency deal.

Adding to the financial strain on the industry, creditors are owed $11 million after rival distributor Stomp also sold its business last month and went into administration.

But the jobs of Stomp's employees have been saved, with new owners Paul Uniacke and Edward Nedelko, who run Video Ezy and Blockbuster, committed to keeping the company's Abbotsford warehouse.

''Ours is business as usual, absolutely,'' Uniacke says.

Shock made a desperate bid to save itself in June, shutting down three companies, including its publishing arm, but it wasn't enough. While the sale to Regency has kept the Shock name alive, it raises issues that are to be investigated by the man in charge of Shock's corporate remains, administrator David Ross.

A list of creditors obtained by EG shows Shock owed Regency $1.1 million, raising the possibility the sale deal may give it an unfair advantage over other creditors - many of whom are bands, graphic artists and other small businesses who are going to find the financial hit hard to take.

''Part of my role as administrator is to review the sale contract to make sure it was at arm's length,'' Ross says. ''That will be the major focus of my administration.''

Those who have lost out in Shock's collapse include twee pop group Architecture in Helsinki (owed $2800), punk label Casadeldisco ($2200) and veteran rockers Painters and Dockers ($500).

Bigger losers are Melbourne's two weekly street-press magazines Beat and Inpress, which are owed $6700 and $34,320 respectively, and DVD trade magazine publisher Scribal Holdings, owed more than $20,000.

None is likely to see much, if any, of a return and songwriters signed to Shock Music Publishing are unlikely to receive any of the $1.5 million in royalties they are owed.

While there is $464,000 in the publisher's bank account, the cash remains in limbo because the company's bank, NAB, has laid claim to it.

While Stomp owes far more money, many of its creditors are overseas labels. Iconic Seattle label Sub Pop is owed $219,000, Metal Blade $140,000 and LA's CMH Records $136,000. Locally, it owes money to labels including all four majors - and Shock.

Both companies appear to have been hit by the decline of the CD and the rise of digital downloading. While a move to DVD distribution helped keep them afloat, that market has also hit a rough patch.

With the major labels weakened by decades of cuts, the problems at Shock and Stomp represent another narrowing of the options Melbourne's bands and labels can use to get their music into shops.

Johnston says she has come up with a solution that bridges the divide between physical and digital, which she will use when the Bulls release an album later this year. ''We're going to put it out on vinyl and just have an electronic download, which people are going to do anyway,'' she says. ''Let's sell the vinyl to people who still really care about the way they listen to music and the way artwork looks on an album cover. For everyone else who doesn't give a shit, they can burn it on to their iPod.''

Hello September dearest.

Do enjoy this second day of Spring.

Who gets booze from the butcher? Odd.

Salmon has never even coached has he? Last I heard he was into property development.

Do you really think Knights was sacked due to attendance levels at games, hyperfuzz?

I'd be pretty happy with an $800,000 pay out.

Ashley Prescott is the other assistant that left.

Please don't give the job to Gary O'Donnell. I just don't think it would work.

Is Blake Caracella still at Collingwood?

Probably should have read Anok's post.