Utopia Distribution Services (UDS) has entered bankruptcy proceedings in the UK, with its landlord DP World acquiring the company's assets through a 'pre-pack' administration deal. The collapse affects both UDS and Utopia Accelerate (UK) Limited, with the latter owing over £1 million to various creditors.

UDS, which handled physical product distribution for major labels including Universal Music and Sony Music in the UK, faced difficulties after Utopia's bankruptcy in Switzerland cut off necessary cash flow. Major labels showed no interest in acquiring UDS, leading to DP World's takeover of the distribution operations.

DP World confirmed they will manage the full day-to-day operations of the Bicester distribution center, emphasizing their commitment to working with entertainment partners in this expanded role.

Drew Hill, Managing Director at Proper Music Group, expressed disappointment at the separation of UDS and Proper Music Group but assured that DP World will continue operations at the Bicester site. Proper Music Distribution remains operational, maintaining service standards through the Christmas period and into the new year.

Proper Music Distribution's significant market presence includes:

• $2 billion paid to rights holders
• Distribution for over 6,000 independent labels
• Partnerships with major companies including ADA, AWAL, Believe, Cherry Red, Concord, and others
• 15% share of the UK physical recorded market

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