HMV to go into administration

Martok

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The latest high street casualty.

http://www.bbc.co.uk/news/business-21021073

Music and DVD chain HMV, which employs about 4,350 staff, has confirmed it will appoint an administrator, making it the latest High Street casualty.

Deloitte will run the 239-store chain while it assesses prospects for the business and seeks potential buyers.

Trading in HMV shares on the London Stock Exchange are being suspended, the company said in a statement.

Started in 1921, HMV became one of the biggest names on the High Street, but has struggled against online retailing.

The company has been in financial crisis for many months and on 13 December warned that it faced a possible breach of bank loan agreements.

In a statement late on Monday the company 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..."

The statement continued that the board "understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business".

The retailer, whose first store was opened in London's Oxford Street in 1921, has faced intense competition from online retailers, digital downloads, and supermarkets in recent years.

As its debts mounted, HMV sold off parts of the business, notably its live entertainment arm and the Waterstones book chain.

Last week, HMV announced a month-long sale with 25% off prices, sparking worries that the company needed to shift stock after poor Christmas trading.

The company's troubles underline the gloom on the High Street and come after a string of high-profile failures, including the closure last week of camera retailer Jessops and Comet's collapse last year.
Not surprised at this TBH. I've not bought from them for years, their prices were too expensive.

Not much left on the high street if you want to buy games and music apart from the struggling Game and independent games and music shops and of course the supermarkets.
 

Slaine

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Ive just read that all vouchers and gift cards are now unuseable too.

Such a shame, but then their prices were just ridiculous. I only ever bought sale or 2nd hand stuff from them.

Looks like our High Streets are fast disappearing. I predict the US model, where the only place to buy retail is at a large Mall, and the humble High Street will disappear altogether.

Im curious to see how WH Smiths and Waterstones are faring. :|
 

Martok

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Slaine said:
Im curious to see how WH Smiths and Waterstones are faring. :|
Waterstones have just closed their branch in Watford which has been there for 17 years, so I don't think they are doing so good. It wouldn't surprise me if they became another casualty, along with Blockbuster.
 

ColSonders

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Slaine said:
Looks like our High Streets are fast disappearing. I predict the US model, where the only place to buy retail is at a large Mall, and the humble High Street will disappear altogether.
I wouldn't even be so sure about malls continuing to exist.

We have the MetroCentre nearby which is one of the largest shopping malls in Europe, afaik it's still the largest in the UK. This is the best place to go shopping that i've been to (it's certainly in a different league from those I went to in Florida while I was there) and the number of businesses that are basically stopping in there is hard to believe, what was once a very packed place where a spot never stayed empty for more than a month is now a place where you notice shops closed down for months on end, and by the bucket full.

Make no mistake, the rent in shopping malls is every bit as unrealistic as a high street and it's difficult to cover these costs when you have such a competitive online retail source for your shopping.

I wouldn't be surprised if we end up with supermarkets that simply sell everything, from groceries to car parts, to electricals much the same as the bigger supermarkets in the US.
 

Macca72-

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It's a pity that there's going to be a lot of people losing their jobs, but I'm surprised that they have managed to stay open for so long. Their prices are a joke, £24 for the Beatles White Album is an example. I buy loads of music, I still buy CD's and always will, I know that's seen as old fasioned now :grandpa: , but paying £7.00 to download an album in MP3 quality! I'd rather not.
I buy most of my CD's from Amazon and Ebay now.
 
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