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Struggling HMV Calls In Administrators.
MajorDSmythe
"I tolerate this century, but I don't enjoy it."Moderator
HMV has thrown in the towel after years of struggling to fend off nimbler rivals by calling in administrators in a move which puts more than 4,000 jobs in jeopardy.
As Sky News revealed exclusively earlier on Monday evening, the board of HMV has served notice of its intention to appoint Deloitte to oversee last-ditch efforts to rescue the high street entertainment retailer.
Following a board meeting that lasted several hours, HMV directors, led by the chairman, Philip Rowley, and chief executive Trevor Moore, decided the business could no longer trade without insolvency protection.
HMV had been in talks with its lenders until last week about a new financing package, the terms of which could not be agreed, according to insiders.
The company said on Monday:
"On 13 December 2012, the Company 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."
Trading in HMV's shares, which are now expected to be worthless, will be suspended tomorrow morning.
The appointment of Deloitte follows the accountancy firm's work on the collapse of Woolworths in 2008.
HMV has been caught between the encroachment onto its turf of supermarket chains such as Tesco and Asda, and the explosive growth of digital specialists like Amazon which are unencumbered by hefty real estate costs.
Chuka Umunna, the shadow business secretary, said the news of HMV's potential demise was "deeply worrying":
"HMV is a national institution that has been a feature of our high streets for over 90 years, so this news is deeply worrying. For the sake of HMV’s employees, we hope a way can be found to keep the business going – the demise of this national institution would be a sad loss to British retail."
HMV traces its roots back to 1921, when Sir Edward Elgar, the renowned composer and conductor, opened its first store on London's Oxford Street.
Retail insiders said tonight that Deloitte was likely to be "inundated" with offers for parts of HMV's business, including its brand, but said it was unlikely that any buyer would emerge for the whole business.
http://uk.news.yahoo.com/board-hmv-calls-administrators-220822274--finance.html
I consider myself a traditional consumer (the majority of DVD's I buy, I buy instore from hmv), so I will be saddened if this happens. Having spent many an hour browsing, i'm going to miss the horror section of my local store.
As Sky News revealed exclusively earlier on Monday evening, the board of HMV has served notice of its intention to appoint Deloitte to oversee last-ditch efforts to rescue the high street entertainment retailer.
Following a board meeting that lasted several hours, HMV directors, led by the chairman, Philip Rowley, and chief executive Trevor Moore, decided the business could no longer trade without insolvency protection.
HMV had been in talks with its lenders until last week about a new financing package, the terms of which could not be agreed, according to insiders.
The company said on Monday:
"On 13 December 2012, the Company 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."
Trading in HMV's shares, which are now expected to be worthless, will be suspended tomorrow morning.
The appointment of Deloitte follows the accountancy firm's work on the collapse of Woolworths in 2008.
HMV has been caught between the encroachment onto its turf of supermarket chains such as Tesco and Asda, and the explosive growth of digital specialists like Amazon which are unencumbered by hefty real estate costs.
Chuka Umunna, the shadow business secretary, said the news of HMV's potential demise was "deeply worrying":
"HMV is a national institution that has been a feature of our high streets for over 90 years, so this news is deeply worrying. For the sake of HMV’s employees, we hope a way can be found to keep the business going – the demise of this national institution would be a sad loss to British retail."
HMV traces its roots back to 1921, when Sir Edward Elgar, the renowned composer and conductor, opened its first store on London's Oxford Street.
Retail insiders said tonight that Deloitte was likely to be "inundated" with offers for parts of HMV's business, including its brand, but said it was unlikely that any buyer would emerge for the whole business.
http://uk.news.yahoo.com/board-hmv-calls-administrators-220822274--finance.html
I consider myself a traditional consumer (the majority of DVD's I buy, I buy instore from hmv), so I will be saddened if this happens. Having spent many an hour browsing, i'm going to miss the horror section of my local store.
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Comments
its a sad day as i too can spend hours in my local store browsing through the thousands of blu rays and dvds.
Amazon, Ebay and Tesco seemed to have killed HMV off ,the high street is dying more and more each day.
Precisely. Jessops last week, HMV this week, who knows what chain is due for the chop next.
Never been into downloading movies, i like to have something tangible, like a great looking box set :-)
Does this mean the SF HMV steel book exclusive will now never see the light of day?
Although this was inevitable, they haven't been the giant they'd been for a number of years and have had financial troubles for sometime, this is what comes of everyone choosing the internet (me included) over the high street, we can mourn it but we've only ourselves to blame.
I do always try my best to buy from HMV, but it is hard when Amazon sell everything much cheaper.
I remember when I was kid my mum would take me to HMV once a month to buy two Bond VHS priced at £16.99 each! I've still kept the stickers on them.
Our price, Zavvi and now HMV.
:( :( :(
I go there pretty much every week.
Restores my faith in mankind RC7 to see a bloke who knows his Stewart Lee - especially after reading the posts in the 'best sitcom' thread on here.
Have to agree - used to spend hours when in London in that store. Even met Sir Rog there only last year
Anyway, one of the pleasures in going to stores, as opposed to buying online, was that sometimes (well, often) you might find something you didn't expect to be there. I discovered the Cottars thanks to Virgin. I also found that "scandalous" Petula Clark americna TV special she did in 1968 with Harry Belafonte. Too bad, really.
I felt sadder when Woolworths closed down because I worked there for a bit when I was a teenager.
I met him once, and I've seen him live before. Great comedian.
Ditto. I've seen him upwards of 20 times now. It's amazing to see how his shows evolve across a run. Did you see 'Carpet Remnant World' live? I will never ever get bored of listening to him.
Went to Carpet Remnant World last year - genius. Have you got the Fist of Fun DVD that him and Herring released themseleves because the beeb wouldnt (probably too busy paying for shite like Mrs Browns Boys)? I remember FOF being brilliant at the time but am worried it might not be as good as I remember if I watch it now.
Perhaps we should organise an MI6 members Stewart Lee night out next time hes on tour? For discerning members only - ie: if you answer 'yes' to the question 'Do you like Michael Mcintyre?' you automatically dis-invite yourself.
Yes. A mate of mine had VHS copies from the nineties so I was reasonably familiar with it, but a lot of the content on the DVD I don't remember seeing before. I would describe it as 'charming' and ten times better than some of the utter corporate drivel that's rammed down our throats these days.
An MI6 Stewart Lee night would be brilliant. If we could catch him at the Hampstead Comedy Club, even better. There's only room for about 30 people. It's like having him in your living room. His current high-profile might have put paid to that, however.
Remember this?
Plus... I have f##ing vouchers for the shop!!! Selfish arse wipes, yet again totally mis-management at the top, which effects the poor buggers below!! I'm Sorry for all there shop floor staff!!
I loved the variety in the store, and the price for a DVD/Blu-Ray was so much lower than here in Norway.
You will be missed!