Historic British music and entertainment retail chain HMV has filed for administration following soft December sales.
The move puts over 2,200 jobs at risk at the 97-year-old company. HMV last fell into administration in 2013 before being rescued by restructuring experts Hilco.
Hilco has today (December 28) confirmed that it has now appointed KPMG as its administrator.
HMV’s 125 UK stores will remain open while discussions with suppliers and potential acquirers continue.
“Even an exceptionally well-run and much-loved business such as HMV cannot withstand the tsunami of challenges facing UK retailers over the last 12 months on top of such a dramatic change in consumer behaviour in the entertainment market.”
Paul McGowan, HMV
Paul McGowan, Executive Chairman of HMV and Hilco Capital, said: “During the key Christmas trading period the market for DVD fell by over 30% compared to the previous year and, whilst HMV performed considerably better than that, such a deterioration in a key sector of the market is unsustainable.
“HMV has clearly not been insulated from the general malaise of the UK High Street and has suffered the same challenges with Business Rates and other government-centric policies which have led to increased fixed costs in the business.
“Business rates alone represent an annual cost to HMV in excess of £15m.
“Even an exceptionally well-run and much-loved business such as HMV cannot withstand the tsunami of challenges facing UK retailers over the last 12 months on top of such a dramatic change in consumer behaviour in the entertainment market.”Music Business Worldwide
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