HMV on the Brink of Administration

Friday, 28th December 2018

The chain has 130 shops, and employs around 2,200 people. It has been in talks with a number of major music industry brands hoping to get financial support. These discussions have not produced enough assurances to hold up the finances of the company, and there is now doubt as to whether the company will survive as a high street retailer for long enough to mark its centenary, which will occur in 2021.

The firm is expected to announce the appointment of KPMG as its administrators on Friday. Record labels have been keen to avert the disappearance of the last major specialist music retailer on the British high streets. The company fell into administration in 2013, and was bought by Hilco, who picked up the groupís debt and business as a part of a £50m deal.

The rise of streaming services has decimated the core of HMVís business model and has made its future operation unsustainable, and this Christmas has been a difficult trading period for most bricks and mortar retailers, with jobs disappearing and many high street chains, including Maplin, Toys R Us and Poundworld all collapsing. Other retailers have been forced to shed stores or cut jobs in a bid to hold on to their place on the high street.

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