ALLANS Music and Billy Hyde stores have gone bust, throwing the future of the iconic instrument businesses into doubt.

The music brands have been part of Melbourne’s history, with the first Allans Music opening in Collins St in the 1850s.

Billy Hyde’s Music was founded in 1962 and was a mecca for drummers from across the city.

The companies merged two years ago to form Australian Music Group Holdings, but the company today announced it was going into receivership.

The chain has nine stores in Victoria, with another 20 across the country, but has struggled because of stiff competition from online retailers.

Manny Gauci-Seddon, who owns rival independent music store Manny’s in Fitzroy, said he was sad to hear of the group’s demise.

Mr Gauci-Seddon, who managed the Allans Music Store in the city for 10 years before opening his own outlet, said music retailers were struggling.

"It’s no different to any retail business, people are importing directly from overseas and it’s inevitable more stores will go under," he said.

"We pay our staff superannuation, WorkCover and award rates or higher but people don’t consider that when they buy online.

"There used to be a time when Australians looked after their mates. In America they pay their staff $8 an hour and they only get two weeks’ annual leave a year."

Mr Gauci-Seddon said musicians who bought online did not get the right advice.

Australian Music Group Holdings declined to answer questions from the Herald Sun.

Originally published as Iconic music stores enter receivership