Dorian On The Block

While at the 2005 CES in Las Vegas, we received word that The Dorian Group had filed for Chapter 11 bankruptcy protection. More details have emerged in the days following the show.

The Dorian Group has estimated debts of $1 million and filed for bankruptcy earlier this month, on January 5. The largest secured creditor noted in the filing is Portland, ME–based bank Banknorth N.A., listed with a claim for a loan of approximately $300,000.

Chapter 11 is often used to protect a company as it attempts to reorganize its obligations, and allows continued operations while creditors work out a way to save the company. However, included in the petition filed in US Bankruptcy Court in Albany is a corporate resolution stating that Dorian has hired a certified public accountant to conduct "an orderly wind-down of its business and liquidation of its assets."

Dorian also issued a statement on January 15 indicating that it will liquidate its assets and requesting bids for the purchase of "this outstanding record company in a sealed bidding process to be authorized by the US Bankruptcy Court, Northern New York District." The label was founded in 1988 by Craig Dory and Brian Levine and has released approximately 400 compact disc titles. Dorian also claims that there are several unreleased titles "in various stages of production." Requests for information about bidding can be made by sending an email to cdd@dorian.com. Bidding ends February 18, 2005.

Dorian struggled to survive in 2004 amid a sluggish year for classical labels. A note posted November 2, 2004 on the company's website states: "Dorian Recordings is unable to process orders at this time. If you would like to place an order today, we recommend that you visit another reputable online retailer. You may still browse our website, but the checkout facility is disabled. We apologize for any inconvenience that this may cause you. Please visit us again soon to check for updates on this status."

The company's president, Craig D. Dory, filed Chapter 7 bankruptcy protection on January 11, 2005. Chapter 7 allows for someone to eliminate most debts in exchange for giving up property that is not protected by "exemption" laws. Any remaining unpaid debt is eliminated with certain exceptions.

Also in the lurch is audiophile favorite Reference Recordings, which The Dorian Group had purchased in August of 2003. At that time, Dorian's Levine noted, "In a challenging environment like this, becoming a more substantial player through acquisition is our strategy for success. We are continuing to search for complementary, premium quality, niche-oriented labels for acquisition and will seek the financing needed to fuel that growth."

But according to former Reference Recordings employees, the Dorian acquisition was never consummated, and RR partners (Tam Henderson, Marcia Martin, and Keith O. Johnson) are reported to be involved in a legal action in New York State to have their label returned to them.

Further details about Dorian's and RR's fates will be reported here as they emerge.

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