Icon Digital Entertainment appointed BDO Spicers administrators yesterday. The firm owes Westpac bank about NZ$13 million and 125 others almost $6 million, the
Dominion Post reported.
Icon shut the doors of its Sounds chain of around 50 music retail shops. The music business appears to be the cause of the company's trading difficulties thanks to discounting from rivals and the rise of the internet as an alternative channel (whether paid or pirated). The company continues to keep its seven Blockbuster and Games Plus DVD and games rental shops open.
Changing industries and countries, another firm to call in administrators yesterday was South Australian regional carrier O'Connor Airlines. Directors of the firm appointed McGrathNicol.
ABC reported the firm owes creditors between $4 million and $5 million though the primary lender isn't identified.
Outside of the finance company sector there have been surprisingly few company failures and thus banks loans turning sour.
Still, with the reserve banks of New Zealand and Australia ratcheting interest rates the credit cycle has to take a sour turn soon.