Sanity's market exit blow to high street: Australian retailer confirms plans to close 110 outlets. (Retail).

Australian retailer Sanity has confirmed that it is preparing its exit from the UK music market, less than two years after it bought the loss-making Our Price chain from Virgin Entertainment Group.

The proposed sale of Sanity Entertainment's UK music stores, which were re-branded from Our Price under the Sanity banner, marks the latest in a line of music retail departures from the UK High Street, including the withdrawal of Tower earlier this year and Andy Records' slide into administration.

BDO has been appointed as advisers to find a buyer for the Sanity chain, which claims 2% of the UK music market, following a review of the business ordered by Bain International, Australian-based parent company Brazin's consultants.

Five of Sanity's 110 UK stores, many of which were bought from Virgin Entertainment Group in October 2001, will be retained and converted into footwear outlets before Christmas this year.

Three others are expected to become surf-wear stores next spring, while the remaining stores will be sold.

Brazin director and acting chief financial officer Anthony Ho says, "We decided to put the business on the market, as the view is that, because we only have 2% of the UK music market, no matter how hard we work, it is difficult to grow that business."

Ho adds, "We thought it was a good opportunity to see who else is out there who may want to consolidate in that area."