HMV closing 37 more stores, 464 layoffs
The deluge of bad news isn't over for UK retailer HMV, with 37 more stores confirmed to be closing in addition to the 66 announced earlier this month. These further closures are resulting in 464 lost jobs, making a post-administrative total of at least 1,454 layoffs.
HMV, one of the UK's most prominent high street sellers of games, went into administration last month after failing to acquire $483 million to finance debts. Restructuring company Hilco then took on the retailer's debt. This latest round of store closures means HMV's UK high street arm will be cut by almost half to 116 stores in four to six weeks' time.
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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
The Joint Administrators of HMV today confirm that a further 37 of the group's stores have been identified for closure. The affected stores employ 464 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 four to six weeks in parallel with the 66 stores that are already subject to a closure programme. HMV currently operates from 219 stores in the UK.
Nick Edwards, Joint Administrator, commented: "As part of our ongoing review of HMV's financial position, we have undertaken a further review of the store portfolio and have identified an additional 37 stores for closure. This step has been taken in order to enhance the prospects of the restructured business continuing as a going concern. Together with the previously identified 66 closures, this restructuring will result in a residual portfolio of some 116 stores.
"We are extremely grateful to the staff for their continued strong support and commitment during an understandably difficult period. All other key stakeholders including suppliers and landlords remain supportive and we appreciate their ongoing assistance."
Nick Edwards, Rob Harding and Neville Kahn were appointed Joint Administrators of HMV on 15 January 2013.
