Shock Music Publishing has gone in to liquidation, with the receivers called in yesterday (June 7). In an email to colleagues and associates, former General Manager of Shock Music Publishing, Clive Hodson, said:
It is with sadness I advise that effective immediately Shock Music Publishing has closed operation. All staff including myself have been let go. The company has been put into liquidation with administrators Lawler Draper Dillion now in control. I will contact AMCOS this week to ascertain the process to resign from the board. I hope to see you all very soon and if anyone needs a cleaner please give me a call.
Kind regards,
Clive Hodson
Former GM Shock Music Publishing
Shock Music Publishing is owned by One Stop Entertainment Group Holdings Pty Ltd, a Queensland based holding company which also owns Shock Music Publishing affiliate, Shock Entertainment, which markets and distributes the company’s record, CD and DVD lines. This holding company reported a massive loss of $7.6 million for the year to June 2008, with the losses accrued on investments. As it was only a holding company, it was still allowed to trade, with the company’s auditor noting that it was reliant on financial injections from its subsidiary One Stop Entertainment Pty Ltd.
One Stop Entertainment Pty Ltd lost almost $1.5 million for the year ending June 2008, according to documents lodged with the Australian Securities and Investment Commission, however for the 2009 financial year they managed to increase revenue by 17% to $34.4 million and turn the previous year’s loss into a $272,000 profit. However, looking at the income statements it appears that borrowing costs and depreciation and impairment charges leapt in that year from $700,000 to $2 million, indicating that the company was paying off money owed by affiliated companies.
At this point the current debts of Shock Music Publishing Pty Ltd are being assessed by the administrators, with the effect of the liquidation on affiliate companies Shock Entertainment Pty Ltd, Fulfillment Australia Pty Ltd and One Stop Entertainment Pty Ltd yet to be ascertained.
