EFA go bye bye!!!

[Tony]

i thought things would get better in 2004, but no!!

EFA, a fairly bloody huge german distributor that if you dont know you should, decalred bankrupcy on tuesday.

count the companies, its crazy!!

count the labels that are now floating aimlessly again, shall we all start to quote them.............

[dJpZ]

the disappearence of a firm can be due to many reasons, no? even if anyway they endured the global crisis.

[dJpZ]

I mean maybe the boss stolen the box :drool:

[Dustin Zahn]

I figured this a week ago when I saw Kanzleramt and Tresor pull out. Then we got a call saying that EFA was trying to sell all labels to Neuton.

Basically, its probably better for the independent record shops anyway (In the U.S. at least). This way people can bypass the chain shops we have here (Electric Fetus) and now they have to come to the smaller record shops to pick up some tunes. It's also cheaper for us, quicker, and more efficient. While I can't say I wish anybody to go under in business it isn't really hurting us at the moment.

[Larney]

Bottom line is these companies go down because they have cash flow problems. And those problems are mainly caused by financing to many P&D deals that don't realise adequate sales. The problems are also compounded by giving 60 and 90 day credit to shops on sales that are made. Doesn't take a genius to work out if you pay for manufacture upfront and then have to wait three or four months to get paid on sales that things go tits up eventually!

[dirty_bass]

60-90 day credit to shops sucks. And you still end up chasing the buggers at the end of it.
An end to all of that nonsense.

[Dustin Zahn]

Bottom line is these companies go down because they have cash flow problems. And those problems are mainly caused by financing to many P&D deals that don't realise adequate sales. The problems are also compounded by giving 60 and 90 day credit to shops on sales that are made. Doesn't take a genius to work out if you pay for manufacture upfront and then have to wait three or four months to get paid on sales that things go tits up eventually!

P&Ds play a part of it, but the P&D fad started fading out a couple years ago anyway. It's just that the scene is struggling.

[SlavikSvensk]

let's face it...the record side of this bidniz doesn't make money. maybe a bit for the lucky and clever ones, but i think that's the exception rather than the rule...

[Sunil]

Not good news but anything that might prevent SRD from distributing techno can't be seen as a bad thing, in my opinion they've done a completely shite job for Tresor and Kanzleramt (To a lesser degree) over the last few years.