Shutdown of Zhivago music business the end of an era

BY ENDA CUNNINGHAM

The Zhivago music store business – synonymous with Galway for almost 40 years – is going into voluntary liquidation with the loss of 12 jobs.

Owner Joe Carroll confirmed to the Sentinel yesterday (Monday) that his two ‘Sound City’ companies – which operated the premises on Shop Street and in the Galway Shopping Centre – had collapsed because of competition from internet sales and downloads, poor sales over the Christmas and the economic downturn.

However, the Ticketmaster outlet will continue to trade from Lynch’s Café on Shop Street, while all Zhivago gift vouchers will be honoured at a new music store which will replace Zhivago in the Galway Shopping Centre.

Mr Carroll said that despite revamping and restructuring the business in recent years, the company could not continue trading and had lost a “small fortune”.

“It’s awful. We did everything we could to keep the wolf from the door, but there was no choice in the end, but to go into voluntary liquidation. We rebranded Zhivago last May, and tried everything to keep going – gifts and toys.

“It was a combination of a lot of factors, but the industry as a whole is under pressure, we only saw a 1% reduction in commercial rates. Retailers are on their knees out there. I’m so sorry for all the staff, they had to take several wage cuts in recent years and work shorter hours, and now their jobs are gone. Some of them have been with the business for 20 years. It’s very sad.“

At Christmas, sales were down 30% on the previous year, which in itself was a horrendous year. “

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