Real Groovy Records is in receivership just four months after the business was put up for sale. It has stores in Auckland, Wellington, Christchurch and Dunedin.
Receivers Corporate Finance say there are options for the brand's survival. It is in negotiations with potential purchasers of three of the stores and, if successful, the Real Groovy brand and business will continue.
Corporate Finance says it is freezing store vouchers and store credits until the situation becomes clearer.
Real Groove magazine, formerly owned by Real Groovy, was put up for sale with the rest of the business some months ago. The magazine was sold two months ago.
Editor Duncan Grieve says the cracks started to show as early as 2006, when digital downloading really began to affect the New Zealand market.