HMV Enters Administration

Today HMV, a company that has been around since 1921, has entered administration with administrators Deloitte.

The company has been in trouble for a few months and, after poor sales in a crucial Christmas period and massive competition from the online retailers Amazon and the iTunes Store, finally succumbed to the pressure upon it. The company currently has over 200 stores and also employs around 4,000 people in the UK.

Part of the statement from HMV read:

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.

The company have been able to stock the newest game from Capcom, DmC: Devil May Cry, but may not be able to stock brand new games from other publishers which, last year, happened to GAME when they could not stock new releases such as Mass Effect 3.

According to the Financial Times, the company that purchased the Canadian branch of HMV IN 2011 is considering buying some of the UK stores. While administrators look for a buyer HMV have suspended the use of gift cards and vouchers in addition to their online store.

http://invalidopinions.com/2013/01/15/hmv-enters-administration/