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HMV May Close Up To 100 Stores

More job losses could be on the way.

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

  1. Peter Chapman
    Team TSA: Editor
    Since: Forever

    it’s really sad for staff who are affected but this is probably a necessary part of saving what they can of the company.

    But yeah, being made redundant is shit. Best of luck to any and all involved.

    Comment posted on 04/02/2013 at 11:12.
  2. avengerrr
    Since: Oct 2012

    When I returned home a couple of weeks ago in Birmingham I noticed they had already closed down the Pavilion store and moved all stock in to the Bullring store which was about 3 mins away.

    I wonder whether the closing stores will be the ones with less sales or it will just be closing down doubled stores that are literally 3 mins away from each other. Hopefully it won’t be the Hanley one as its the only HMV in miles around here.

    Comment posted on 04/02/2013 at 12:28.
    • Sad Panda
      Since: May 2010

      I’ve never understood the need for multiples of the same store in close proximity to one another. I can sense a theme here but until recently we had 2 GAME stores less than 100 metres from each other and a Gamestation less than 2 minutes round the corner.

      I feel for the frontline staff at HMV, yet again mismanagement further up the food chain destroys the lives of ordinary workers while the people who screwed it all up will worm their way into keeping their roles or a massive payoff.

      Comment posted on 04/02/2013 at 12:45.
      • bunimomike
        Since: Jul 2009

        Multiple stores at strategic nodal points in a city/town can capture enormous footfall compared to just one store. However, it leaves them vulnerable to quiet times as there’s barely ever a situation where two stores make twice the amount of the single store did initially.

        Comment posted on 04/02/2013 at 12:57.
  3. bunimomike
    Since: Jul 2009

    My sympathies to those in strife. HMV were so slow to react to the internet. Hell, if they’d been on their toes they should’ve been the leading store for entertainment (films, games, etc) online. After all, peace of mind with dealing with a familiar presence in the high street would’ve floored one hurdle with online shopping straight away!

    Comment posted on 04/02/2013 at 12:59.
  4. An-dz
    Since: Oct 2010

    There are 2 in Glasgow that you can almost see from the front doors of each other, if it wasn’t for the corner of a building in the way. They sort of had this coming if other places are as bad as that.

    Comment posted on 04/02/2013 at 17:17.