Article written by Aran Suddi.
Published on 04/02/2013 at 10:24 AM.
Another week and another stage in the HMV administration story as The Telegraph claims that HMV will be closing between 60 to 100 stores, leading to over 1000 job losses.
This information apparently comes from a source who is close to the process, who claims that this announcement will be made by Deloitte, the administrators in this case, at some point this week, though whether that’s true or not remains to be seen. The source also claims that these stores won’t be shut down straight away but closed after the majority of their remaining stock has been sold.
It wouldn’t be surprising news should the announcement be made. HMV found themselves in adminstration by not being able to keep up with changing market trends and evolving the business model to compete with the cheaper online alternatives. This led to less income and some stores are likely to be barely making margins or could be operating at a loss. The same situation occurred with GAME and a closure of stores did save the company, at least for the time being.
Jobs were already lost at HMV’s head office last week where upset employees gained control of the company’s Twitter account to air their grievances.
Source: The Telegraph