Utopia Music saves Cinram Novum from insolvency in pre pack administration deal
The acquisition safeguards Music Industry's UK physical supply chain and secures 300 jobs
- Utopia Distribution Services Limited, a UK company fully owned by Utopia Music AG, will acquire Cinram Novum’s business and certain assets into a newly formed subsidiary in the UK
- As a result, Cinram will continue servicing independent and major record labels such as Universal Music Group and Sony Music Entertainment, large retailers, and artists, while securing 300 jobs
- Utopia Music is a trusted partner to the Music Industry with solid distribution expertise, through its acquired companies Proper Music Group and Absolute Label Services, making it well placed to continue Cinram’s business in the UK
London, UK, 13th September 2022 – Utopia Music, the Swiss Music fintech company, has announced that Utopia Distribution Services Limited, a UK company fully owned by Utopia Music AG, acquired the business and certain assets of Cinram Novum, a leading independent provider of warehouse, fulfilment, distribution and business support, in a pre-pack administration deal. The transaction completed today.
The buyout saves the 40 year old Music Industry distributor from insolvency and secures 300 jobs. Cinram will continue servicing independent and major record labels, including Universal Music Group and Sony Music Entertainment, large retailers, and artists.
“The loss of Cinram Novum would have been detrimental to the entire UK Music Industry, resulting in financial losses and disruption for labels, retailers, artists and their fans,” said Roberto Neri, Chief Operating Officer, Utopia Music. “Through this acquisition, our intention is that Utopia can secure Cinram’s future and safeguard the UK Music Industry.”
Utopia is well positioned to continue to lead Cinram’s business operations. In 2022, the company launched its Distribution Services business unit with the acquisitions of Proper Music Group and Absolute Label Services.
Through the acquisition, Utopia is also doubling down on its dedication to optimizing the Music ecosystem, including minimizing its carbon impact. Cinram Novum was the first in the UK to provide suppliers and customers with dropship fulfilment through its cutting-edge API driven logistics platform. Dropship fulfillment sees media shipped to the consumer directly from Cinram Novum’s warehouse reducing unnecessary stages in the supply chain.