Boxman pulls the plug, Per and Marie both stand to lose money

Boxman, the Swedish-founded online record store, ceased its operations on Wednesday in an attempt to avoid bankrupty. According to chief executive Tony Salter, the company has until October 23 to find $29 million to be able to continue their business. Another possibility is to find a company which would buy Boxman and its operations – pretty much like CDNow which was bought by Europe’s largest media company Bertelsmann AG for $117 million just after the company would have found itself without cash.

Per and Marie both are among Boxman’s 500 shareholders – along with other Swedish music business insiders, such as members of Ace of Base. According to Hallandsposten, Per has invested 3 million SEK (approx. $303,000) and Marie about half of that. They both made their investments through their holding companies: Music For Money (Gessle) and Amelia Music (Fredriksson). They both still own most of the shares they bought back in 1997.

“Unfortunately,” said Mats Nilemar, one of their business advisors.

This article was written for an earlier version of The Daily Roxette.
Technical errors may occur.

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October 11th, 2000

Internal reference code for TDR's Good Reporters: [tdr 111960]

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