Music store at risk amid ‘a tsunami’ of challenges
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. co.uk
HMV in Canterbury which is under threat of closure after the company went into administration