HIGH ST GIANT HMV ON BRINK
2,200 in job fear
HMV is set to collapse into administration for the second time in six years as the High Street bloodbath continues.
The music retailer has filed a notice of intention to appoint administrators amid a cash crisis.
The news has sparked fresh fears for the 2,200 staff employed by the struggling giant in its 130 stores. HMV last filed for administration in 2013.
The chain has struggled with high business rates, the surging rise of online streaming services and a fall in its customer base.
Malaise
Paul McGowan, executive chairman of HMV and Hilco, said: “During the key Christmas trading period the market for DVDs fell by over 30% compared to the previous year and, while HMV performed considerably better than that, such a deterioration in a key sector of the market is unsustainable.
“HMV has clearly not been insulated from the general malaise of the UK high street and has suffered the same challenges with business rates and other government-centric policies which have led to increased fixed costs in the business.”
Mr McGowan added: “Even an exceptionally well-run and muchloved business such as HMV cannot withstand the tsunami of challenges facing UK retailers over the last 12 months on top of such a dramatic change in consumer behaviour in the entertainment market.”
Holders of gift vouchers at the music store are now being advised to spend them as soon as possible. The looming HMV collapse comes in a nightmare year for the sector, which has also seen Poundworld, Toys R Us and Maplin go bust.
Even heavyweights including Marks & Spencer and Debenhams have announced plans to close hundreds of stores.