Pinnacle were one of our main suppliers when I worked at a record store back in the mid-90's whilst having a brief sojurn from the games biz. I doubt any of the people I knew then are still with the company but 94 people are still without their jobs.
What's more worrying is that Pinnacle, and Entertainment UK (part of the Woolworths empire and another major distributor for CDs, DVDs and computer games) who also went into administration a couple of weeks ago, supply many of the music, dvd and computer stores and websites with their stock. Everyone from the likes of HMV to Amazon and Play. With the distributors now out of business it means that the stores and websites won't be able to get hold of the merchandise to sell to the consumers - and it being Christmas there's a fair amount of sales to be lost due to problems in the supply chain. Some sites - such as Zavvi's (formerly Virgin) online shop - have already suspended online sales only selling through their physical stores what they physically have in stock and can restock from otehr suppliers.
With the disappearence of Entertainment UK and now Pinnacle it could throw the financial situation of many stores and online companies into question at their busiest time of year as they struggle to meet the demand on certain items.
Then you have the problems with the manufacturer side of things - the record labels, etc. Not only will they see there sales fall because people can't buy the CDs, computer games, dvds, etc from the shops they will have been owed money by the now defunct distributors and also have stock in those distributors warehouses. Some will be paid off by the administrators - others will loose a lot of money in unpaid bills and lost merchandise. Thus throwing a financial curveball at the publishers, many of which are already having a hard time in the marketplace.
Sad times in the Entertainment biz :(