Another UK retailer enters administration in the first days of 2013-- entertainment chain HMV, following the refusal of suppliers to answer a request for £300 million in funding.
Deloitte (fresh from the Comet failure) takes over administration duties.
The retailer faces a potential banking agreement breach, and is in discussion with banks and key stakeholders. As a result HMV shares are out of the London Stock Exchange.
HMV stores will continue trading, even if over 4000 jobs are at risk should the retailer fail to find a buyer. The HMV Group also owns CD and DVD retailer Fopp and book seller Waterstones.
In an nasty twist of fate, current HMV CEO Trevor Moore used to lead the 1st high street casualty of 2013, photographic retailer Jesops, while non-executive director David Adams is the former Jessops chairman.
We all know the reasons for the failure of HMV's 230 outlets-- as retail consultancy Conlumino director Neil Saunders tells the Financial Times, “It has been a long time coming but everyone has known the writing was on the wall since the day someone first downloaded a digital song.”
Go HMV
