HMV is poised to go into administration as early as Tuesday, delivering a further blow to Britainâ€™s embattled high streets, after suppliers refused a request for a Â£300m lifeline for the struggling entertainment retailer. Deloitte, which has been advising HMVâ€™s lending banks, is being lined up as administrator to the chain, putting 4,000 jobs at risk.
The expected administration continues the grim start to the new year for the high street, following the collapse of Jessops, the camera retailer, which closed on Friday, with the loss of 1,400 jobs.
Late last week, HMV asked its suppliers, which include music labels, game makers and film companies, for around Â£300m in additional financing to pay off its bank debt, and fund an overhaul of the companyâ€™s business model.
But the proposal was turned down, raising fresh fears that the company would be forced into administration.
The retailer has been hit by the migration to purchasing music and films online. It sought to combat this trend, diversifying into live venues and consumer electronics, but this was not enough to stem the decline in its core market. http://www.ft.com/cms/s/0/c4096aee-5e82-11e2-a771-00144feab49a.ht etc ...
Its been on the cards for a few years now. I do hope the Irish stores can remain open - I often pop into the Galway branch.