Phoenix Service Corp

Platt Music Corp., one of Los Angeles' oldest companies, has closed its operations and liquidated its holdings--the victim of a costly expansion drive and increased competition from consumer electronics emporiums. Although the 82-year-old company's initial business was selling sheet music and player piano rolls, it had gradually evolved into a profitable appliance and consumer electronic concessionaire in May Co. and other California department stores.

Platt Music Corp., one of Los Angeles' oldest companies, has closed its operations and liquidated its holdings--the victim of a costly expansion drive and increased competition from consumer electronics emporiums. Although the 82-year-old company's initial business was selling sheet music and player piano rolls, it had gradually evolved into a profitable appliance and consumer electronic concessionaire in May Co. and other California department stores.

The former executives of Platt Music Co. have been sued for $16.5 million for allegedly paying themselves huge bonuses and transferring assets out of the company before turning it over for liquidation. The suits were filed on behalf of Platt's creditors, who were owed a total of about $75 million, by the Credit Managers Assn. of Southern California, the nonprofit organization that was responsible for liquidating the Los Angeles company and distributing the proceeds to the creditors.