HMV falls into administration
HMV’s administrators Deloitte have confirmed the 92-year-old firm’s collapse, with more than 4,000 members of staff being made redundant and vouchers and gift cards becoming worthless.
However, 239 of HMV’s outlets will remain open while Deloitte administrators Nick Edwards, Neville Kahn and Rob Harding draw up plans to sell part or all of the business.
The high street store held 35% of the CD market in 2012, and had hoped that half of its 240 outlets could be profitable once again on the basis that the company was freed of debt.
But with the CD market dwindling, physical music retail is said to have little hope for the future.
Two years of suffering with debts and being over taken by internet retailers and supermarkets dominating the entertainment industry; has resulted in HMV’s supporting firms such as Universal Music, EMI, Warner Brothers and Disney reluctantly opting out of their roles.
In a statement, HMV said: “The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect.”
HMV’s brand, famous for its Nipper The Dog trademark, still holds a fond place in many hearts and the subsequent aftermath is widespread public despondence.
Labour’s shadow business secretary, Chuka Umunna, said: “HMV is a national institution that has been a feature of our high streets for over 90 years so this news is deeply worrying. For the sake of HMV’s employees, we hope a way can be found to keep the business going. The demise of HMV – a national institution – would be a sad loss for British retail.”