Jacksons Rare Guitars Goes Under

[Djembe]

http://www.smh.com.au/entertainment/music/strings-attached-as-guitar-store-goes-under-20121217-2bjai.html

This is such a shame.
I feel sorry for those people who had their guitars on consignment, and will lose them because of a recent law that nobody knew about.

[tunetown]

The really sucks. I hope the owners of the consigned instruments get them back. I have never heard of this new law.

[ChrisW]

Someone told me about this a few weeks ago.
Looks like the vintage instruments on consignment is going to be a real trainwreck.
Some people had expensive and rare gear in the store and aren't going to get it back.... or any money (apparently).

[Manning]

Unsold consignments should be OK, as the stock must be returned to the rightful owner. (ie. effectively no different to unpaid for inventory)

The items that were sold but the money not forwarded to the owner are the problem, as those people just join the list of other unsecured creditors. They'll typically only get pennies on the dollar sadly.

[Manning]

Actually ignore what I said above - the NSW Government slipped a nifty little law under the books in January.

It now appears that the Personal Properties Securities Act...

"...requires the owners of consigned goods to lodge their details with an electronic register - called the Personal Property Securities Register - that can be searched by potential buyers. Anyone selling personal property on consignment must register if they want to avoid the risk of losing a security interest in their goods should the company selling their items collapse.

"Personal property" can include posessions such as cars, boats, caravans, furniture and machinery - almost anything except land and buildings. Before the act was passed, consignment notes were used to prove ownership."

[rob]

and there is no claim over inventory that has not been paid for either. Once a distributor invoices it out, it is gone regardless of whether the retailer has paid for it or not.