Another retail outlet bits the dust - it looks like GAK is about to call in the administrators

GAK: A Longstanding Presence in Brighton's Music Scene

Introduction

GAK, which stands for Guitar, Amp, and Keyboard, has been an integral part of the Brighton music scene for over 30 years. Founded by Gary Marshall in 1992, the business was sold to Max McKellar and Ian Stephens in 2021. Both were previously involved in the business before the sale. Under Marshall’s leadership, GAK became one of the first UK retailers to launch an online store to sell musical equipment.

GAK website message

However, on Tuesday, March 25, 2025, the GAK website disappeared. It reported that "Our site is currently unavailable," while a closed sign hung on the shop's doors, stating it was "closed for maintenance."

GAK Speculation: What Went Wrong?

Speculation quickly spread in the local press. Publications like Music Radar reported concerns about the company's stability. Rumors intensified, indicating that this non-trading situation could become permanent. Here are some key points that fueled the speculation:

1. The website was taken down sometime between Monday evening (March 24) and Tuesday morning (March 25), and it has remained offline since.

2. The shop was closed on Tuesday morning and has not reopened.

3. Staff were seen in the shop on March 28, but they were instructed not to comment on the situation due to legal reasons.

4. GAK's Reverb store has also been offline since Tuesday.

5. A small business sales website featured an ad for the shop, stating it was a "musical instrument retailer and supplier in the South East of England" with a turnover of £20,364,000, inviting offers by 5 PM on March 28. Such a turnover is rare among music retailers on the South Coast.

6. The last two years' filed accounts show continuous operating losses.

7. There are rumors that management has approached local retailers about liquidating stock.

   
   

Despite the growing concerns, there is no official statement about the company's administration or formal liquidation. A search in the London Gazette for any entries related to GAK since the shop closed showed no announcements. (For context, the London Gazette is where such notices are typically published in the UK.)

Understanding Administration and Liquidation

In the UK, entering administration offers legal protection from creditors while administrators assess whether the business can continue operating. If not, the next step is liquidation, which involves legally winding up the business.

Another Recent High-Profile UK Retailer Gone Bust

Last year, I remarked on the situation involving the North London/Home Counties retailer StudioSpares, which faced similar troubles. Their management eventually called in the administrators. As a result, Gear4Life purchased the intellectual property, company name, and trading aliases. However, Gear4Life currently trades a limited selection of the original StudioSpares product lines.

GAK shop in Brighton

While the exact reasons for GAK's potential downfall remain unclear, one fundamental issue is apparent: if a business consistently incurs losses, it cannot survive long-term.

Factors Contributing to Retail Challenges

Several factors contribute to the challenges faced by retailers like GAK:

1. High Operating Costs: Doing business in the UK, particularly maintaining retail premises, comes with significant expenses compared to other regions worldwide.

   
   

2. International Sourcing: The way goods are traded internationally can make it cheaper to source products from countries like Germany, even after accounting for freight and import taxes. Although the situation has changed somewhat since the UK left the European Union, this can still be a legitimate purchasing strategy.

   
   

3. Consumer Behavior: Many customers try items in-store, only to purchase them online for a lower price. This trend has become increasingly common. Retailers face pressure to align prices across channels to combat this practice, but they must be cautious to avoid appearing collusive, which is illegal in the UK, unlike in some other markets. An example is Andertons in Guildford, which maintains consistent pricing across in-store, online, and customer-direct orders.

   
   

The Future of GAK: What Lies Ahead

As we look forward, it remains to be seen how this situation will progress in the coming weeks. Will someone attempt to replicate the Gear4Life acquisition model? While that seems unlikely, it's worth noting that the trading entity for the online business is separate from the shop's legal entity. Consequently, all stock is reportedly owned by the shop, which means the trading name and website may not hold significant value independently.

Conclusion: A Community Concern

In conclusion, the fate of GAK is a matter of concern for the local music community. The disappearance of such a long-standing retailer leaves many wondering about its implications for the Brighton music scene. We'll keep an eye on developments and hope for a positive resolution.

Until next time...

GAK GAKclosed themusictechguyuk musictechguyuk tmtgcommunity musician

About the Author

Jon describes himself as a frustrated musician with a passion for the electronic instruments that help him and other musicians be creative. He started playing keyboards in his late teens and rekindled his passion by building a new studio after separation.

About the Blog

The Music Tech Guy UK's Blog, Website, and YouTube channel were created to share Jon's experiences and insights on the industry. He focuses on how these elements affect the small musician, along with technical tips for configuring and maintaining equipment he uses.

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