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B&Os Bath

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Chris Townsend
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Chris Townsend Posted: Wed, Apr 15 2015 12:49 PM
Is it true they've just shut their doors, emptied their shelves and shut up for good?

Beosound Stage, Beovision 8-40, Beolit 20, Beosound Explore.

Dave Farr
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Dave Farr replied on Wed, Apr 15 2015 1:06 PM

Looks like it according to a Google search:

http://stores.bang-olufsen.com/great-britain/bang-olufsen-of-bath/

Dave

moxxey
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moxxey replied on Wed, Apr 15 2015 1:57 PM

Chris Townsend:
Is it true they've just shut their doors, emptied their shelves and shut up for good?

Indeed. Walked past at lunch, store is empty. Cleared out yesterday. Scary thing is, B&O Bath is in one of the most affluent areas of the country. I'm sure I was told a few years ago it was within the top five most profitable UK B&O stores.

Astonished B&O doesn't appear to have any contingency for customers who hare pre-ordered and pre-paid for goods through one of their retailers. Only course of action is to go to your credit card company!

The above is easily enough for any long-standing customer to be put off the brand.

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Killyp replied on Wed, Apr 15 2015 8:16 PM

Yes closed today when I walked past. End of an era. Proud to say B&O were the first company I worked for...

Mark
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Mark replied on Wed, Apr 15 2015 8:48 PM
there's many ways to skin a cat but closing in such an area is bizarre, without presence on the high street how can they get their important selling message across. The high street is a maddening place, I live in affluent part of SW London and our high street is a mix of property agents, supermarket chains, fried chicken and charity shops, it seems independents just struggle paying rent and competing against the internet where realistically their is not such a huge price difference apart from convenience.

Could B&O lower its dealer standards (maintain quality but lower visual/aesthetic costs) and work on better profit margins and support?

we tend to forget there is more to design than designing.

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Paul W replied on Wed, Apr 15 2015 9:23 PM

I agree Mark but it's happened in highly affluent Hampstead (great staff), beautiful part of Chester (again really nice staff), Leeds (great staff too). Really sad. Something is seriously wrong if they are not enough in these huge income areas. Has the market changed too much??? Is everybody buying SONOS type multi room systems or just iPhone/Bluetooth docks and maybe LG TVs??? Maybe. Maybe B&O needs to get a £450 4K LG TV, work their sound magic with it and sell it for £1400? 

Now you see the stress that Tue has no doubt had! Retail is such a competitive but highly changing environment!

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moxxey replied on Wed, Apr 15 2015 9:52 PM

Paul W:

Has the market changed too much??? 

I think it's a combination of traditional customers not changing their old TVs, with the younger generation not interest in paying £5K for a B&O TV. Of course, some do, just no where near as many as in the past. Harder sell, high rents, little support from B&O HQ = less motivation for dealer.

This isn't going to get any better, folks. Remember most people here view B&O with positive rose-tinted glasses. We're not good examples of an average customer.

I had £3400 of pre-paid un-delivered orders tied up in the Bath store. I had zero idea it was going to close!

Ben_S
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Ben_S replied on Wed, Apr 15 2015 9:56 PM

Wasn't this a new store last year or at least a major refurbishment?

Ben

Paul W
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Paul W replied on Wed, Apr 15 2015 10:00 PM

I'm gutted for you Moxxie as I know you really liked that store. I remember seeing it when I visited Future publishing last year. I loved Bath :)

It's really sad. One near to me closed last year and it had been in the guys family for 30 years. He worked so hard! But I agree Moxxey, very few people have 5K to spend on a TV. And I think that todays generation want to spend their money on totally different things compared to other generations. 

I'm shocked for you though Moxxie. I really thought that you'd of known about it closing :(

Chris Townsend
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There certainly seems to be a bit of a toxic mix coming in from all directions, and I personally haven't a clue what the retailers are going through or need.

Ten years ago there was a distinct gap between B&O TVs, and the rest of the AV market that was by and large full of cheap looking rubbish. That just isn't the case anymore, where even cheap makes like LG are turning out good looking sets with excellent pictures.

My new £450 LG set for the kids bedroom, has a better picture and array of excellent smart apps which are actually useful, than my 11-46 ever had. I hate to say it, but it does. The bottom of the range LG set Erm..

The shops are full of soundbars that do a half decent job, the one from Naim the Musso is a cracker. When the makes finally get round to fusing the two together successfully its game over. A lot of it at least.

The V1 comes with Beosystem 4, WISA. I can't think of a single person I know that would ever utilise such equipment. What they want from a Beovision is a great looking set, brilliant picture and sound. At 3 times the price of a regular set, not 5-6 times.

I'm off to chear myself up with the GodfatherYes - thumbs up

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Paul W
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Paul W replied on Wed, Apr 15 2015 10:35 PM

Totally, totally agree with you Chris! I remember when you could buy a basic MX that was stripped of the surround sound, sat decoder BUT still offered excellent sound quality at a realistic price. A nice designed PLAY TV with a 4K panel and great sound, electronic curtains and nice bright colour options - the hallmarks of B&O is all that is required as an entry level at £1400 for a 40". 

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Killyp replied on Wed, Apr 15 2015 10:44 PM

When I started working for B&O, the MX4200 was retailing for £1100, maybe £1195 I seem to remember, when a good, similarly-sized set from Sony would cost £350, and the MX4200 was a really great TV - all the normal features you'd expect plus a few extra unusual additions (the STB controller, motorised wall bracket).

Things are different nowadays and they can't keep running the same old model unfortunately.

It's also increasingly difficult for B&O to really provide something magical on the music side of things as the way music is consumed nowadays doesn't really leave any opportunity for event or magic, which the Beosound 3000, 9000 etc... used to provide.

Paul W
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Paul W replied on Wed, Apr 15 2015 10:58 PM

Very true Killy. Especially as the majority now use (myself included) an iPhone for everything and no, I wouldn't want it any other way :) Maybe they could bring back the magic with bluetooth docks with motorised ALT tweeters like on the Audi A6/A8?  Certainly, things do change a lot and when a teenager  who has been brought up with an iPhone sees the sheer huge size of say a 9000 that only plays 6 discs compared to the 100,000 of their 128gb iPhone then you realise :)

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9 LEE replied on Wed, Apr 15 2015 11:51 PM

We can all analyse until the cows come home, but at the end of the day it's another store closed in a location where one should thrive...

I don't know the details so can't comment - but I'm genuinely saddened when a store is closed down, for whatever reason.

I wish Mike and his staff well in the future and always enjoyed doing business with the Bath store.  I'll miss visiting the town too!

Lee

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moxxey replied on Thu, Apr 16 2015 6:59 AM

9 LEE:

I wish Mike and his staff well in the future and always enjoyed doing business with the Bath store.  I'll miss visiting the town too!

I had a personal phone call from Mike yesterday, which was great of him. He didn't need to do that.

9Lee, you can always come and visit me :)

Paul W - I used to work for Future (circa 2003). Now, that's truly an odd company. Either on an incredible high or in a terrible low!

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Paul W replied on Thu, Apr 16 2015 2:42 PM

Yes Moxxie, I had a feeling that you may of worked there :) I visited the guys at the mountain bike magazine section. Awesome crowd of people. An office full of mountain bikes and MacBook Pro's - BLISS!

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moxxey replied on Thu, Apr 16 2015 5:20 PM

Just received my creditor's form from the solicitors handling the liquidation. There's a meeting in Cheltenham about store assets.

It's a very odd way to handle business. B&O is a worldwide brand, but they 'allow' one of their retailers to go bust with customer's having active pre-paid orders on the system, which they won't and can't fulfil. Then the customer's of the brand have to go to a creditor's meeting and/or chase their credit card company to retrieve a refund.

However we debate the future of the brand, this cannot be a good way to treat loyal and long-standing customers of your brand?

Mark
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Mark replied on Thu, Apr 16 2015 5:51 PM
I'm not privy to B&O's selling mechanism but they could protect their customers by simple on line ordering procedure i.e if you, the dealer take any monies as a deposit or order it is logged direct and live with B&O Denmark thus creating a unique customer reference number. This then protects the customer, shop and manufacture as their is a clear visible order trail, plus the manufacture has a real time snapshot of what is selling and what is not.

As said I have no understanding of the mechanism B&O use but have heard on this forum many times how customers around the world loose their deposits...

Moxxey I wish you all the best luck in retrieving your owed monies.

we tend to forget there is more to design than designing.

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StUrrock replied on Thu, Apr 16 2015 6:00 PM
moxxey:

Just received my creditor's form from the solicitors handling the liquidation. There's a meeting in Cheltenham about store assets.

It's a very odd way to handle business. B&O is a worldwide brand, but they 'allow' one of their retailers to go bust with customer's having active pre-paid orders on the system, which they won't and can't fulfil. Then the customer's of the brand have to go to a creditor's meeting and/or chase their credit card company to retrieve a refund.

B&O are not unusual in this.

The franchisee (shop) is the one who has the legal contract with the end user not the franchisor.

That is why companies like them use the franchise model in order to reduce their financial risk.

Indeed there must have been occasions in business (can't say in B&Os or this case) that the franchisor has had to force a non paying franchisee into liquidation for non payment of bills.

Always, always pay your deposit by credit card then you are protected by the cc company.
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I used to live in Bath, and I loved that store, I bought my BV3 32" from them after the very helpful replies to my query of which TV to buy from the wonderful Beoworld forum members, who rightly suggested that TV for my movies!

Now 10 years later, i am looking for a replacement, and I would dearly love an Anvant, but it is too big at 55" and also too expensive, but I also have an 42" LG in teh bdroom, and it is a remarkable set, but the sound bar I got is a bit chunky, but it is wireless and it does a great job!  I am now thinking the easiest would be to simply relapce the B&O TV (keeping the beautiful motorised 3 drawer stand, I know it wont motor, but it has all my boxes in!) with another LG TV, if only B&O allowed theiir £999 speakers to atach opitcally or worelessly, it would work for me, but I may simply have to save the £5k over a few years and buy an Avant as it is stunning, but wish it was smaller.

Sorry for Bath sotre team they were a great bunch and nothing was too much trouble all the times I simply popped in over my lunch hours to admire the stuff they had, they were never pushy or annoyed that I didn't buy anything simply happy to chat, oh how things have chaged, recently emailing the Hanover Square store, they didn't bother to reply!

Chris
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Chris replied on Thu, Apr 16 2015 6:22 PM

moxxey:
Just received my creditor's form from the solicitors handling the liquidation....... this cannot be a good way to treat loyal and long-standing customers... 

Is this the normal way of treating loyal long lasting customers in this Bath shop? I have for myself, never payed anything in advance with my dealer. Its a matter of mutual trust.

"Believe nothing you read and only half of what you see, let your ears tell you the truth."

Chris Townsend
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Hi there, if you are prepared to not buy the latest thing then there quite a few good options.

A Beovision 7-40 Mk3 £1,500, or the Mk6Yes - thumbs up for £3,900. Brilliant picture, motorised stand, a built in Bluray player and fantastic speaker.

Quite a few Beovision 10's of varying Mks from about £2,400 upwards. There are a few 11's from time to time at about £4,000.

I've directly compared a Mk5 7 to a 10 and 11, and the 7's picture looked like it was in a different class.

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moxxey:

It's a very odd way to handle business. B&O is a worldwide brand, but they 'allow' one of their retailers to go bust with customer's having active pre-paid orders on the system, which they won't and can't fulfil.

The dealer allowed you to pay fully, probably knowing well in advance where the situation is with regards to them closing, then closes down shop without notifying you nor even offering a refund? Now he has forced you to deal with the creditors and fight it out for what was yours to begin with. The good business owners who have to go under do right by their customers by at least offering to return the money and putting them in the loop in their closings. I think the phone call that he gave you after the fact, was the least he could have done and quite frankly should have been done before they closed shop. It's a shame that some dealers have to go under, but there is a much better way to handle it all. This isn't B&Os fault but rather who ever owns the franchise location. Think of the B&O dealer model as the same as car dealers. You are usually never doing direct business with any car maker except Tesla. Big Smile

Hopefully, you get your cash back on it all. If you are apprehensive about another dealer see if there is a corporately owned store nearby that can assist you with future purchases. At least at that point you can have a little reassurance that you are dealing with the factory and you'll get your owed equipment.

Ah, you know... A little B&O here, a little there 

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moxxey replied on Thu, Apr 16 2015 8:27 PM

StUrrock:

B&O are not unusual in this. The franchisee (shop) is the one who has the legal contract with the end user not the franchisor.

I'm aware how a franchising model works.

My point is and was that this kind of model seriously affects long-term customers when things go seriously wrong. In this example, I've been pro-actively buying B&O products via the Bath store (and other sources), every year, since 2003.

If the brand owner allows their retail franchise (remember most customers won't know it's a 'franchise') go bust, then these long-term customers are affected by the process. It affects the brand.

And, yes, you can argue your case with your credit card company, but it's not straightforward. You can't just call, explain and get your cash back. You have to fill out a form, the form be sent to their disputes team, disputes team evaluate and then consider the refund - this can take 4 to 8 weeks. 

It just doesn't make for a good system, franchise or not. Being sent a creditor's letter and form for a worldwide brand, just doesn't sit well with me.

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StUrrock replied on Thu, Apr 16 2015 9:48 PM
moxxey:

I'm aware how a franchising model works.

If the brand owner allows their retail franchise (remember most customers won't know it's a 'franchise') go bust, then these long-term customers are affected by the process. It affects the brand.

Anyone who is aware how the franchise model works, knows ultimately the franchise owner cannot be held responsible if a single franchisee goes bust. This could be due to any number of reasons.

Customer perception of a franchise owner if a load of franchisees goes bust however is a different matter.

You are quite right that dents consumer confidence in the brand.

The brand then needs to rethink if the franchise model still works, maybe in this case it does not?

If the franchise model does not work then the brand must move on, which it appears B&O seems to be doing.

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Mark replied on Thu, Apr 16 2015 10:28 PM
Would B&O support a local retail outlet in the short term until they found a new partner ?

we tend to forget there is more to design than designing.

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moxxey replied on Thu, Apr 16 2015 10:34 PM

StUrrock:

Anyone who is aware how the franchise model works, knows ultimately the franchise owner cannot be held responsible if a single franchisee goes bust. This could be due to any number of reasons.

Yes, but that's the key point. The average consumer doesn't know. In the same way many McDonald's are a franchise. But they still bear the McDonald's brand, marketing and other brand points. I've been in the Bath store many a time when a customer from another store has walked in for advice on their setup - they see "B&O", expect it to be B&O and expect support. Most stores will, of course, willingly offer support.

But although that franchise owner cannot be held responsible, the franchisor should, actually, hold some responsibility over their brand, how it's represented and, ultimately, how their (the franchisor's customers via the store) customers are treated by the brand and the store. By liquidating one of their stores then, sadly some write-off costs should be allocated to a successful closure - the customer shouldn't have to be handled by a liquidating agent. The franchisor should really make some effort to contact customers, even if it's to advise on the next steps.

What happens to existing store orders? Who is now handling B&O finance through the store? What about post-sale warranties? Will post-sale installations occur via the third-party engineer etc etc etc? None of these questions can be answered as B&O can't answer them. You can only contact the liquidator - and frankly they have no clue.

StUrrock
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StUrrock replied on Thu, Apr 16 2015 10:40 PM
Mark:

Would B&O support a local retail outlet in the short term until they found a new partner ?

Can't answer that one.

But it reminds me of a quote I think is from Donald Trump, where he said;

"If I owe the bank £1 I can't repay I'm in trouble, If I owe the same bank £1000000 they are in trouble"
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StUrrock replied on Thu, Apr 16 2015 10:45 PM
moxxey:

Yes, but that's the key point. The average consumer doesn't know. In the same way many McDonald's are a franchise. But they still bear the McDonald's brand, marketing and other brand points. I've been in the Bath store many a time when a customer from another store has walked in for advice on their setup - they see "B&O", expect it to be B&O and expect support. Most stores will, of course, willingly offer support.

But although that franchise owner cannot be held responsible, the franchisor should, actually, hold some responsibility over their brand, how it's represented and, ultimately, how their (the franchisor's customers via the store) customers are treated by the brand and the store. By liquidating one of their stores then, sadly some write-off costs should be allocated to a successful closure - the customer shouldn't have to be handled by a liquidating agent. The franchisor should really make some effort to contact customers, even if it's to advise on the next steps.

What happens to existing store orders? Who is now handling B&O finance through the store? What about post-sale warranties? Will post-sale installations occur via the third-party engineer etc etc etc? None of these questions can be answered as B&O can't answer them. You can only contact the liquidator - and frankly they have no clue.

Your key point seems to imply the franchise system in a B&O type of business doesn't work?

The MacDonald thing does not stand comparison as, as far as I know, the MacDonald franchise requires NO after sales service (food poisoning aside Smile).
Mark
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Mark replied on Thu, Apr 16 2015 10:52 PM
The auto industry successfully run the franchised model (apart from a few unique geographically places), most customers do not realise this and feel they are talking/dealing straight with the manufacture when they enter a sales showroom or service centre. Yes the franchise model maybe wrong but it can work successfully if supported correctly by the manufacture, but it does take a lot of work and regular monitoring.

we tend to forget there is more to design than designing.

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Scuttlebroom:
Sorry for Bath sotre team they were a great bunch and nothing was too much trouble all the times I simply popped in over my lunch hours to admire the stuff they had, they were never pushy or annoyed that I didn't buy anything simply happy to chat, oh how things have chaged, recently emailing the Hanover Square store, they didn't bother to reply!

 

Hi, this the Hanover Square team here.

We are sorry, but we haven't received your email. 

If you could kindly send me your details, I would be happy to contact you & respond to any queries. 

Thank you.

 

 

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vikinger replied on Fri, Apr 17 2015 4:50 PM

I thought that the B&O UK franchise model worked along the lines of the franchisee having to provide a certain turnover or return to head office within a given period. After that period, failure to produce the required profits would involve the franchised business being transferred to B&O UK, who would either continue with the business under direct ownership or would close it.

Having said that, franchisees are often limited companies in their own right and can close or liquidate of their own accord. For some reason a lot of people think that it's a good thing to be dealing with a limited company, whereas the truth is that the limited liability is a warning that you could lose your money. Paying with a credit card brings a bank into the contract, so at least that way you will get your money back eventually.

Graham

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Simonbeo replied on Fri, Apr 17 2015 5:57 PM

Mark:
The auto industry successfully run the franchised model (apart from a few unique geographically places), most customers do not realise this and feel they are talking/dealing straight with the manufacture when they enter a sales showroom or service centre. Yes the franchise model maybe wrong but it can work successfully if supported correctly by the manufacture, but it does take a lot of work and regular monitoring.

Many car manufacturers own what appear to be franchises but have been bought out ; Ford prefers to own Dagenham Motors and the companies within that group as it gives them more control of the customer experience . Having spent so much time and money developing products the person representing the company is  obviously very important as is stock control.

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Mark replied on Fri, Apr 17 2015 8:23 PM
I was thinking Sytner, Inchape, Pendragon, HR Owen, Lookers, Arnold Clark, Jardine, Vertu etc but yes the likes of Ford, Mercedes, Renault and Porsche own a number of their own dealerships. So could B&O successfully do both direct and franchise ?

we tend to forget there is more to design than designing.

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elephant replied on Fri, Apr 17 2015 11:01 PM
BOHanoverSq:

Hi, this the Hanover Square team here.

We are sorry, but we haven't received your email.

If you could kindly send me your details, I would be happy to contact you & respond to any queries.

Thank you.

Well done Hanover for listening here and being open and proactive

BeoNut since '75

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vikinger replied on Fri, Apr 17 2015 11:24 PM

Mark:
I was thinking Sytner, Inchape, Pendragon, HR Owen, Lookers, Arnold Clark, Jardine, Vertu etc but yes the likes of Ford, Mercedes, Renault and Porsche own a number of their own dealerships. So could B&O successfully do both direct and franchise ?

They do.

Graham

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Mark replied on Sat, Apr 18 2015 8:24 AM
Thanks Graham for the clarification....

we tend to forget there is more to design than designing.

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vikinger replied on Sat, Apr 18 2015 2:57 PM

Both B&O and Sony have gone from Chester. If you go to the Sony website, they actually list Richer Sounds as a Sony retailer, and Richer Sounds is in the same road that B&O and Sony were once in.

On the franchise question I think B&O UK own several B&O stores. It would be a brave franchisee who put-up £300k + or whatever B&O currently require, knowing that he was going to be in competition with B&O directly owned stores. Not only that, but imagine the impact of the Play products coming out and being sold direct online. For many years Bose only sold by mail order or online, then they opened an outlet store, then many stores.

It seems that the whole AV sector is in a state of endless flux.

Graham

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Mark replied on Sat, Apr 18 2015 4:03 PM
Richer sounds are gaining ground in the UK with I think 53 stores (Richer is a private owned no frills company that started out selling discounted and ex-continued stock), with the right training could someone like John Lewis aka a premium nationwide store sell B&O alongside other high end brands mixed with a selection of audio specialists and then manufacture own in capital cities to assist B2B and on-line store?

we tend to forget there is more to design than designing.

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I think John Lewis in Milton Keynes used to sell B&o

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