Following the closure of Jessops last week and Comet earlier last it seems another retail may soon to go the same way as the music and movie shop have been forced to enter administration.
To a lot of us this is expected news as HMV has had to change how it conducts business over recent years in order to stay in the black such as selling assets like the Hammersmith Apollo venue and Waterstones, the last one might have been a good idea to stick with right now.
The company has around 230 stores in total within the UK, employing over 4000 staff members around the country. The first store within which was opened by Sir Edward Elgar in 1921 on Oxford Street, London.
This is the company’s statement given to the site Music Week.
“On 13 December 2012, [HMV] announced that as a result of current market trading conditions, the Company faced material uncertainties and that it was probable that the Group would not comply with its banking covenants at the end of January 2013. The Company also stated that it was in discussions with its banks.
“Since that date, the Company has continued the discussions with its banks and other key stakeholders to remedy the imminent covenant breach. However, the Board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection, and in the circumstances therefore intends to file notice to appoint administrators to the Company and certain of its subsidiaries with immediate effect.
“The Directors of the Company understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business.
“It is proposed that Nick Edwards, Neville Kahn and Rob Harding, partners of Deloitte LLP, will be appointed as the administrators of the Company and certain of its subsidiaries.
“The Company’s ordinary shares will be suspended from trading on the London Stock Exchange with immediate effect.”
Source [Music Week]