Several months after entering administration, leading distributor Cinram Logistics UK has secured its future following acquisition by Patriot Group Investments, Music Week can reveal.
Following the acquisition and transfer of assets on December 1, the new company is trading as Cinram Novum Ltd. The move secures the long-term future and expansion prospects for the logistics and supply chain services provider.
The new business will continue to operate from the 280,000 sq ft site in Aylesbury and service major clients in all branches of the home entertainment industry, supermarkets and direct to consumers. The survival of a major independent distributor will come as a relief to the music industry – AIM had described the potential loss as a “blow” to the sector.
David King, chairman of Patriot Group Investments, said he the company will develop new customers and markets as it works on diversification plan. Patriot Group Investments has a range of logistics, services, property and facilities management businesses, as well as an association with the arts and entertainment.
“We are not a ‘silent’ investor looking for quick return,” he said. “We will be actively involved in re-establishing the business as Cinram Novum, continuing to be a major player in the home entertainment sector as well as expanding into new, synergistic markets. The Company has a rich heritage and I am determined that customer service, reliability and innovation will remain at the heart of this business going forward.”
Cinram Logistics Ltd has been operating in administration since August 2017, following the loss of a major contract with Universal Pictures earlier this year. It provided an uninterrupted service to its clients and retained its key personnel including chief executive, Jim Brooks, who continues in the role at Cinram Novum.
“Sadly in recent years, the business suffered from a lack of commitment and focus from its remote parent company,” said Brooks. “Whereas, I have been extremely impressed with Patriot’s vision and energy and believe this will help to provide the environment in which, our talented and dedicated workforce can flourish. These are factors that were significant in my decision to accept the role of chief executive of Cinram Novum.”
Cinram in the UK can trace its origins back to 1925 and the founding by the Levy family of the first British record label, Oriole Records. Once part of CBS, the current site at Rabans Lane, Aylesbury was built in the early 1970s.