MUSIC retailer Dolphin has been bought out of administration by industry rival S&T Audio.

Dolphin has an online operation in Speke, and a shop in Liverpool city centre.

At its peak, it achieved an annual turnover of £10m, but became a victim of the recession and consequent downturn in consumer spending.

S&T Audio operates nine PMT (Professional Music Technology) superstores nationwide and PMT Online.

In the year to April, 2010, PMT had annual sales of £16m.

Dolphin was founded in 1999 by University of Liverpool students Rob Williams and Jason Tavaria.

The company grew from a bedroom- based student enterprise into one of the leading players in its field.

It was hit by tragedy two years ago when Mr Williams fell to his death while on a snowboarding holiday in Switzerland.

Charles Macmillan, partner and head of corporate recovery at Manchester-based Beever and Struthers, was appointed by Dolphin to act as administrator and secured the sale of the business via a pre-pack administration.

He said: “I’m obviously delighted to save a great many valuable jobs by achieving this sale in what are very difficult times, and wish S&T every success in its future endeavours with Dolphin.

“This acquisition is a major boost to the PMT online offering of S&T Audio, and will increase its already impressive market share.”

Simon Gilson, managing director at S&T Audio, said: “We are very excited by this opportunity. As with our own beginnings 20 years ago, this business was built from scratch by two friends from nothing into a major force in music retail.

“It is our intention to build on the strengths of Dolphin and capitalise on the future possibilities of what is now the largest musical instrument retailer in the UK.”