Supply chain solutions provider DP World has acquired the assets of physical entertainment distributor Utopia Distribution Services (UDS) via a pre-pack administration deal.
The acquisition comes at the tail-end of the Q4 sales period in the UK. UDS distributes titles by major music companies Universal (including the current No.1 by Taylor Swift and Wicked soundtrack) and Sony, as well as indies including Domino and Beggars Group labels (with Integral).
Just over a year ago, DP World partnered with UDS on the biggest distribution warehouse for physical music and video, the 25,000 sq metre Bicester facility.
The sale agreement by UDS with its warehouse facility landlord follows the bankruptcy proceedings initiated against UDS’ parent Proper Group AG (formerly Utopia Music AG) in Switzerland in September.
The acquisition does not affect Proper Music Group (including Proper Music Distribution), which will continue to operate as usual. Utopia Distribution Services is a separate entity that is not part of Proper Music Group
Clients and customers of UDS can be assured that DP World intends to continue running the Bicester site and operations
Drew Hill
A DP World spokesperson said: “We are pleased to confirm that we are taking on responsibility for full day-to-day operation of our state-of-the-art distribution centre at Bicester, following our recent purchase of the business and assets of Utopia Distribution Services out of administration. We look forward to working closely with our entertainment partners in this expanded role.
“This facility has now been open for more than a year and is proving to be an outstanding success, supplying physical music and home entertainment to the growing UK market. Our reliable and competitive service, which includes state-of-the-art technology across the centre, enables our customers to distribute to the whole of the UK from a single site. DP World is committed to playing its part in ensuring the continued success and growth of the physical music and home entertainment sectors in the UK.”
Drew Hill will continue to be MD of Proper Music Group, the holding company for Proper Music Distribution, Proper Records, Proper Publishing and Propermusic.co.
Drew Hill, managing Director at Proper Music Group, said: “Following the bankruptcy of the Swiss entity, I had hoped to keep UDS and Proper Music Group together. Whilst it’s disappointing to see the companies part ways, clients and customers of UDS can be assured that DP World intends to continue running the Bicester site and operations.
“In the meantime, it’s business as usual for Proper Music Distribution, which will continue to deliver the usual high standards of service over the Christmas period and into the New Year whilst I consider opportunities for the future.”
The acquisition of troubled UDS comes at a pivotal time for physical music, which had been on course for its first overall unit sales increase in two decades. The UK market has seen strong physical sales from artists including Taylor Swift, Coldplay, Sabrina Carpenter, Charli XCX and Oasis.
BPI CEO Dr Jo Twist OBE welcomed the move to secure the continuation of the distribution operation.
“The physical music market is important commercially and culturally to a great many artists and fans, and to record labels, distributors and music retailers, and any development that helps to support and secure our music ecosystem is to be welcomed,” she said.
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