HMV goes into administration
The UK's final big music and movie retailer has called in the receivers, as the end for HMV looks in sight...
As had been feared for some time, the last music and DVD big chain retailer on the British high street is facing a bleak future, with the announcement that administrators have been called in to HMV.
HMV has been struggling for a couple of years, and the chain's final straw appeared to come with a disappointing trading period before Christmas. Fears for the future of HMV were heightened with the beginning of a sudden 25% off sale in stores and online over the past week, and according to the Financial Times, suppliers refused to help HMV with its funding problems again over the past few days. That's led to the appointment of Deloitte as administrators for the business. So, straight away, that's a few million that has to be found just to keep them happy.
HMV has 239 stores in the UK and Ireland, employing over 4000 staff, and the demise of the chain will bring to an end the era of the big music and movie retailer on the British high street. It's hard to see any way forward for the business, with downloads - both legal and illegal - the preferred way for many to get hold of their music and movies. Holding thousands of items of physical stock simply no longer makes economic sense. The biggest complaint we've heard aimed at HMV over the past year or two was that it was too expensive, yet that's the cost it's incurred by holding stock at hand in the first place.
Many of us have certainly had ups and downs with HMV over the years, but the loss of the chain will certainly be felt very keenly. Unless a miraculous rescue package is found, or Deloitte finds a way to keep things going once it's paid itself a fat fee, this latest big HMV sale will sadly be its last ahead of one last big sell-off.
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