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HMV facing 66 store closures, 930 layoffs
HMV, a multimedia chain and one of the UK's top high street game retailers, is closing 66 of its 220 stores, with 930 employees losing their jobs as a result. Deloitte, the company's administrators, said the closures should occur within the next one to two months.
"This step has been taken in order to enhance the prospects of securing the business' future as a going concern," said Joint Administrator Nick Edwards. "We continue to receive strong support from staff and are extremely grateful to them for their commitment during an understandably difficult period. All other key stakeholders remain very supportive and I continue to be hopeful of securing a future for the restructured business."
HMV also posted a statement on its Facebook page this morning, echoing Deloitte by saying the closures give the retailer the best chance possible of a viable future on the high street:
"As you may be aware, a number of our stores in the UK have been earmarked for closure. This decision has not been taken lightly and, though very sad and regrettable, it is necessary to give HMV the best possible chance of emerging from administration and having a future on the high street. We'd like to acknowledge the invaluable contribution of affected colleagues, who continue to work with great passion and dedication, and this decision in no way reflects on their considerable efforts on behalf of HMV. We also sincerely thank our customers in these locations for their valued support over many years, who we hope will continue to shop at HMV."
HMV entered administration in January after failing to secure $483 million for debt financing. Hilco, a British restructuring company, subsequently took on the debt and is expected to take over the company. HMV's struggles have headlined a tough 2013 so far for British games retail, with Play.com closing its retail operations and Blockbuster UK also entering administration.
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HMV Group plc, HMV Music Ltd, HMV UK Ltd, HMV (IP) Ltd and Fopp Entertainments Ltd
Together "HMV" or "the Companies" - in administration - update
7 February 2013
The Joint Administrators of HMV today confirm that 66 of the group's stores have been identified for closure. The affected stores employ 930 staff. No fixed date is set for the closure of these stores which will continue to trade in the meantime. However, it is expected that closures will take place over the next one to two months. HMV currently operates from 220 stores in the UK.
Nick Edwards, Joint Administrator, commented: "As part of our ongoing review of HMV's financial position, we have now completed a review of the store portfolio and have identified 66 loss making stores for closure. This step has been taken in order to enhance the prospects of securing the business' future as a going concern.
"We continue to receive strong support from staff and are extremely grateful to them for their commitment during an understandably difficult period. All other key stakeholders remain very supportive and I continue to be hopeful of securing a future for the restructured business."
Nick Edwards, Rob Harding and Neville Kahn were appointed Joint Administrators of HMV on 15 January 2013.
