FEARS FOR JOBS AS HMV ON BRINK OF COLLAPSE
JOBS at an Aberdeen entertainment store could be at risk after firm HMV announced it is on the brink of administration.
The group employs 2,200 staff across 125 branches and has filed a notice of intention to appoint administrators amid a cash crisis at the firm. Employees at the Aberdeen store, based in the Trinity Centre, could also be at risk of losing their jobs. The stores will continue to trade while negotiations are ongoing. If HMV was to go bust, it would be the second time it has collapsed in recent years, having filed for administration in 2013, after which it was acquired by its current owner, Hilco. KPMG is understood to be waiting in the wings to undertake the process. Paul McGowan, executive chairman of HMV and its owner Hilco Capital, said: “During the key Christmas trading period the market for DVD 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. “Business Rates alone represent an annual cost to HMV in excess of £15m. “Even an exceptionally well-run and much-loved 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.”
2,200 jobs at HMV are at risk