Via BBC: "Music and DVD chain HMV, which employs about 4,350 staff, has confirmed it will appoint an administrator, making it the latest High Street casualty. Deloitte will run the 239-store chain while it assesses prospects for the business and seeks potential buyers ...
In a statement late on Monday the company said: "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...
... As its debts mounted, HMV sold off parts of the business, notably its live entertainment arm and the Waterstones book chain.
Last week, HMV announced a month-long sale with 25% off prices, sparking worries that the company needed to shift stock after poor Christmas trading. The Financial Times reported that the final straw came over the past few days when suppliers, including music labels and film companies, declined to help HMV with funding so that it could continue trading...
Neil Saunders, the managing director of retail analyst Conlumino, said he felt the appointment of administrators at HMV "was always inevitable. In the digital era, where 73.4% of music and film are downloaded, HMV's business model has simply become increasingly irrelevant and unsustainable.
He said that although the HMV brand "certainly has some value" for potential buyers, the current business model was dead. TThe bottom line is that there is no real future for physical retail in the music sector," he said.
Updated Jan 22: Major record labels assemble rescue package for struggling HMV, via NME
No comments:
Post a Comment