Two vinyl firms bite the dust

TWO of Britain's last remaining vinyl records businesses have collapsed into receivership, the latest victims of the fad for downloading tunes from the internet.

London-based Vinyl Magic and Alpha Magic specialise in producing and distributing dance records, most of them drum 'n' bass, hardcore and other clubbing genres.

Much of their music is imported from Belgium and Germany and played and mixed by professional DJs. But their records also have a strong following among clubbers and are sold through big British chains such as HMV and dance music stores in the US.

The businesses were set up by former Lola motor racing team director Stephen Taylor and music producer Jerry Hempstead, but demand for their records has waned with the growth in popularity of internet downloads.

Their collapse follows the demise of the Telstar 'cheesy pop' label, home to Posh Spice and The Cheeky Girls. Telstar chairman Neil Palmer also blamed internet downloading, although others pointed to its unsuccessful £1m investment in reviving the career of Posh Spice Victoria Beckham.

The two 'Magic' companies are being handled by the same team of receivers who worked on Telstar - Menzies Corporate Restructuring, which is acting on behalf of the banks.

Only six companies still make vinyl records in the UK.