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HMV To Enter Administration Tomorrow, Official Statement Issued

It's all over for high street retailer.

HMV have been in trouble for a little while and warned last month that it was likely to breach banking covenants, but tonight it seems like the high street retailer is on the cusp of administration, with tomorrow morning penned in as the rather unfortunate end of the line.

Multiple sources are claiming that Deloitte have been appointed as administrators, with a statement due first thing in the morning.

HMV last Friday announced a ‘blue cross’ sale with some reasonable discounts to be found. This hasn’t made much impact, though – shares instantly dropped by a fifth despite claims that the promotion was nothing to do with ongoing negotiations.

4,350 jobs are at risk, according to The Telegraph, who says HMV have nearly 240 stores across the UK and have been going for over ninety years.

Our thoughts go out to those affected.

Update: it’s true. HMV have issued the following statement:

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.

It is proposed that Nick Edwards, Neville Kahn and Rob Harding, partners of Deloitte LLP, will be appointed as the administrators of the Company and certain of its subsidiaries.

The Company’s ordinary shares will be suspended from trading on the London Stock Exchange with immediate effect.

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51 Comments
  1. bmg_123
    Member
    Since: Feb 2012

    4,350 jobs, and none to replace them. The future looks bleak; I’m not even out of school yet and as such I’ve been rejected for many applications on the basis of experience and working hours, although I assume this is the same for everyone. I’ve heard rumors some GAME stores may shut too… :/

    Comment posted on 14/01/2013 at 20:44.
    • fattyuk
      Member
      Since: Apr 2010

      don’t worry young one, McDonald’s will always be round as you can’t get it online cheaper.

      Comment posted on 14/01/2013 at 20:48.
    • The Lone Steven
      Never heard of him.
      Since: May 2010

      Unfortunally, it gets harder when you leave school and try to get a job. I’ve been unemployed for over a year and have been rejected more times then i would like to care. I really hope the current staff at HMV were informed today and not had to find out about this via sites.

      @fatty, Mcdonalds are overpriced imo and seem to be a bit naff. I prefer to get a cheap mircowaveable burger and chips as they taste better. And cheaper. :D

      Comment posted on 14/01/2013 at 20:55.
      • fattyuk
        Member
        Since: Apr 2010

        Rustlers FTW

        Comment posted on 14/01/2013 at 21:03.
      • The Lone Steven
        Never heard of him.
        Since: May 2010

        Nothings beats a good rustlers’s burger with BBQ sauce. Okay, maybe a bacon burger with BBQ sauce. Or a quaterpounder. Unlike Mcdonald’s burgers which are bloody small and disappointing to eat. £4 for a small burger and chips, what an insult. Crud, i’ve gone off topic. :O

        Comment posted on 14/01/2013 at 21:16.
      • Carl
        Member
        Since: Jan 2009

        Yup. Left school in 2010 and still unemployed. All i ever get is “not enough experience” because i’ve never had a job.

        How the bleeding heck to i GET experience if no one will give me a bloody job?

        Comment posted on 14/01/2013 at 22:02.
      • Sympozium
        Member
        Since: Aug 2009

        wait wat. yo dissin Mcdonalds???

        Comment posted on 14/01/2013 at 23:25.
      • Sympozium
        Member
        Since: Aug 2009

        ..then your ordering the burger then, they can be big too. Stop getting the Happy meals *rolls eyes*

        Comment posted on 14/01/2013 at 23:26.
      • Sympozium
        Member
        Since: Aug 2009

        *wrong burger* oh narf…. -__-

        Comment posted on 14/01/2013 at 23:27.
      • cnutard
        Member
        Since: Apr 2011

        If you didn’t go to university I’d highly recommend looking into an apprenticeship. The rate of pay is pants, but you get the training and experience that employers are looking for. It’s a great step into work if you can’t find anything.

        Comment posted on 15/01/2013 at 06:58.
      • The Lone Steven
        Never heard of him.
        Since: May 2010

        @carl, have you thought about Volunterring as that will get you experience. An apprenticeship can be worthwhile as you could end up with a job afterwards. That said, it’s hard as feck to get onto an apprenticeship.

        @Symp, i don’t order their happy meals, i order their normal meals and the burgers are bloody small!

        Comment posted on 15/01/2013 at 11:00.
    • Bilbo_bobbins
      Member
      Since: Jun 2009

      Look at being an apprentice with people, work for nothing or enough to get to work and back while you live with your parents. That will give you valuable work experience and possibility of a job at the end of your term.

      Comment posted on 15/01/2013 at 09:44.
  2. deadwelsh
    Member
    Since: Jun 2009

    this is pretty gutting for me, HMV rescued Fopp which is one of my fave stores in the city I live, not too fussed about HMV, they are just really a goto destination if you want any films or albums, but i never found them competitive price wise if you could be bothered to look elsewhere. I feel sorry for all those people about to lose their jobs.

    Comment posted on 14/01/2013 at 20:50.
    • fattyuk
      Member
      Since: Apr 2010

      5 blu rays for £30 is a good offer ATM, but I agree there pricing isnt on par with online, I was in hmv a few weeks ago (rare occasion for me) and some of the prices I just couldn’t understand.Whist browsing the blu rays there was a couple next to me and the fella picked up a few films and she just said “Nah leave them there cheaper on amazon” And they left without a purchase… which is the trend now.

      Comment posted on 14/01/2013 at 21:06.
  3. Nickboss1
    Member
    Since: Mar 2010

    does this mean my hmv vouchers will be worthless ?

    Comment posted on 14/01/2013 at 21:00.
    • fattyuk
      Member
      Since: Apr 2010

      yup.

      Comment posted on 14/01/2013 at 21:02.
      • Nickboss1
        Member
        Since: Mar 2010

        fuck

        Comment posted on 14/01/2013 at 21:03.
    • The Lone Steven
      Never heard of him.
      Since: May 2010

      Yes so you may want to spend them tomorrow.

      Comment posted on 14/01/2013 at 21:17.
      • Nickboss1
        Member
        Since: Mar 2010

        but if they go into administration tomorrow won’t they be worthless?

        Comment posted on 14/01/2013 at 21:33.
      • Alex C
        One for all.
        Since: Forever

        Possibly. The administrators can just refuse to use them.

        Can you nip down now before it shuts?

        Comment posted on 14/01/2013 at 21:34.
      • Nickboss1
        Member
        Since: Mar 2010

        that’s a very good point what time does hmv picadily close?

        Comment posted on 14/01/2013 at 21:37.
      • Nickboss1
        Member
        Since: Mar 2010

        Too late! I Just got back from HMV picadilly. I thought I could get rid of my vouchers but unfortunatly I was told that they are worthless untill further notice and they are not taking any games for trade in as well.
        The Stuff looked like they were close to tears.
        Terrible.

        Comment posted on 15/01/2013 at 00:07.
      • Nickboss1
        Member
        Since: Mar 2010

        *staff*

        Comment posted on 15/01/2013 at 00:09.
      • Nickboss1
        Member
        Since: Mar 2010

        £150 down the drain :(

        Comment posted on 15/01/2013 at 00:12.
      • kjkg
        Member
        Since: Apr 2010

        Nick, don’t bin them. GAME did the same and refused vouchers and such, then when things “got sorted” they accepted again. So do not bin!!!

        Comment posted on 15/01/2013 at 09:04.
      • gazzagb
        Master of speling mitakse
        Since: Feb 2009

        Same thing happened with me when Zavvi went bust, but the administrators did refund them eventually, I just had to send them off and wait.

        Comment posted on 15/01/2013 at 12:12.
    • gaffers101
      Member
      Since: Oct 2008

      I managed to use my HMV voucher last week after the reading the news on TheSixthAxis a week or so ago – thanks TSA.

      Comment posted on 15/01/2013 at 12:10.
  4. Blayney
    Member
    Since: Sep 2009

    I thought we did well to get 4 DVDs for £12. Now I know why. It’ll be even cheaper tomorrow I guess.

    Hope they manage to keep it alive.

    Comment posted on 14/01/2013 at 21:36.
  5. Temascos
    Member
    Since: Jan 2013

    Seems like the retail chains of yore are going away, if I said it was going to happen a few years ago people would have called me nuts. Damn shame so many people are going to be losing jobs, but that’s the nature of things at the moment. Hopefully they can recover and get jobs soon.

    Comment posted on 14/01/2013 at 21:55.
  6. Alex C
    One for all.
    Since: Forever

    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.

    It is proposed that Nick Edwards, Neville Kahn and Rob Harding, partners of Deloitte LLP, will be appointed as the administrators of the Company and certain of its subsidiaries.

    The Company’s ordinary shares will be suspended from trading on the London Stock Exchange with immediate effect.

    Comment posted on 14/01/2013 at 22:04.
  7. Kennykazey
    Member
    Since: Mar 2010

    Best of wishes for those affected.

    Comment posted on 14/01/2013 at 22:08.
  8. BullyBeefUK
    Member
    Since: Jan 2013

    damn shame, but if im honest i have been downloading all my games for ages now. Any I do buy hard copy I get from Asda as prices are better and I never buy pre-owned.
    Supermarkets and digital download is killing retail. It isnt that HMV is too expensive, it is that supermarkets and online are much cheaper.
    As consumers we can support Game / HMV with our wallets to keep the shops that have served us our games for many years. But most, myself included, will opt for cheapest and convenient methods.

    Comment posted on 14/01/2013 at 22:12.
    • damoxuk
      Member
      Since: May 2011

      Supermarkets are retail it’s still bricks and mortar and downloads are far from any traction with regards to console downloads (PC on the other hand..).

      No it’s Online shops what are killing High street (online again is still retail :D) Retail = Hard copy.

      Either way less choice to buy games = Bad

      Comment posted on 14/01/2013 at 23:22.
      • BullyBeefUK
        Member
        Since: Jan 2013

        Yeah, should have put “specialist retail” :-)

        Comment posted on 14/01/2013 at 23:36.
  9. cam the man
    Member
    Since: May 2009

    Glad to see the work the ComDems is doing to sort out our economy is working… not.
    Comet, Jessops, HMV, next?

    Comment posted on 14/01/2013 at 22:14.
    • Mike
      Member
      Since: Oct 2008

      I don’t understand why people are so quick to blame the government for everything that happens within the economy.

      HMV failed to adapt their business plan due to the competition online and as such lost too much custom due to a more educated customer base.

      As much as I hate to see it happen – business concepts like HMV are dying on the high street and I don’t see the government being any help in this situation. They can’t force customers through the door unfortunately.

      Comment posted on 14/01/2013 at 23:15.
      • Peter Chapman
        Team TSA: Editor
        Since: Forever

        Yep, lord knows I’ll be the first to bash our current government if there’s the faintest whiff of blame but this is a good old case of “fail to evolve and die out” unfortunately. It can happen to any business, regardless of financial climate.

        Although, if you give me a minute, I can work out how it’s Thatcher’s fault. I’m a child of the ’80s, everything is Thatcher’s fault somehow.

        Comment posted on 15/01/2013 at 00:53.
  10. colmshan1990
    Member
    Since: Apr 2009

    Fuck.

    Looks like the only entertainment shop left in Cork will be the rip-off that is GameStop after HMV and GAME shut.

    Oh, and Golden Discs. No idea how they stay open with prices sometimes double what HMV are charging.

    I don’t want to switch to online shopping (no browsing experience, and then I have to wait for the thing to be delivered) but looks like I’ll have no choice. :(

    Comment posted on 14/01/2013 at 23:00.
    • rebelmagnus79
      Member
      Since: Jun 2012

      Yep no reason to go down Patrick Street anymore now.Gamestop already added a fiver to all new games since the closure of Game here . Don’t think Golden Discs have sold games in a long while other than the odd bargain bin jobs.Xtravision pretty much on the way out too looks like gamers in the Rebel County are screwed!Can’t think of too many places to get new release bluray movies either besides HMV!??

      Comment posted on 14/01/2013 at 23:12.
      • colmshan1990
        Member
        Since: Apr 2009

        Xtra-Vision will be the only place to buy new release blu-rays but their selection is limited, much more focused on rentals.

        Tesco will do the odd big release as well, but it’s certainly not common from them.

        And it’ll be between Xtra-Vision and GameStop to see who can charge more for their games with HMV out of the way. Oh, and Smyths. But I can’t recall the last time they managed to beat any of the others on pricing- they’re more focused on getting sales from a parent of a gamer than gamers themselves.

        Comment posted on 15/01/2013 at 15:48.

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