Mu­sic store at risk amid ‘a tsunami’ of chal­lenges

Kentish Express Ashford & District - - BUSINESS KENT UPDATE -

HMV is un­der the threat of clo­sure once again after the firm slipped back into ad­min­is­tra­tion.

The mu­sic re­tailer was saved from the axe six years ago but the mu­sic and film re­tailer has hit trou­bled waters.

It was pre­vi­ously res­cued in 2013 by re­tail re­struc­tur­ing spe­cial­ist Hilco Cap­i­tal, but poor sales in the run up to Christ­mas could spell the end for HMV as it strug­gles to cope with the “tsunami” of on­line chal­lenges.

Paul Mc­Gowan, ex­ec­u­tive chair­man of Hilco Cap­i­tal, said: “Dur­ing the key Christ­mas trad­ing pe­riod the mar­ket for DVD fell by over 30% com­pared to the pre­vi­ous year and, whilst 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.”

KPMG has been ap­pointed ad­min­is­tra­tors.

It is not yet clear what will hap­pen to its 125 stores across the UK, although all will con­tinue to trade as nor­mal in the mean­time.

HMV pre­vi­ously had a store in County Square, which is now oc­cu­pied by The En­ter­tainer next to De­ich­mann.

It also had a shop at the Stop 24 mo­tor­way ser­vices off junc­tion 11 on the M20.

Do you miss Ash­ford's HMV? Write to Ken­tish Ex­press, Unit 4, Park Mall shop­ping cen­tre, Ash­ford, TN24 8RY or email ken­tish­ex­[email protected]­m­group.

HMV in Can­ter­bury which is un­der threat of clo­sure after the com­pany went into ad­min­is­tra­tion

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