Recording labels affected by the collapse of distributor Harmonia Mundi Iberica have managed to reduce their losses.
HMI’s parent, Harmonia Mundi France, announced: ‘All labels distributed by Harmonia Mundi Iberica have found agreement with HM for unpaid invoices.’
The company refused to give details of the agreement and whether it would pay client labels for all unpaid stock delivered before HMI went into administration. Several labels faced losses of many thousands of pounds.
The statement is intended to reassure the industry, which had begun to question the financial stability of HM’s UK and US subsidiaries.
It is understood that HM France is hoping to create a new distribution structure for Spain and Portugal employing a handful of former HMI staff. But HMI’s previous warehousing and production activities will not be revived for the foreseeable future.
HMI’s collapse came within days of the financial failure of leading US classical distributor Qualiton and Codaex Benelux calling in administrators. The future of Codaex UK remains uncertain.
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