Tue, 8th Jan 2019
HMV, the last surviving music specialist on the high streets of the UK, is on the verge of collapsing into administration, and there could be 2,200 jobs at risk.
The company was rescued from administration in 2013, when Hilco made a £50m deal to acquire the debt and the company brand, and saved 140 of the company’s 230 stores. Sadly, those remaining branches are now in trouble and HMV is seeking financial support to keep its doors open.
The major record labels are ken for there to be a stable presence on the high street, but so far HMV has not been able to secure enough support to balance its finances. Their difficulties have been compounded by the fact that the last year has been hard for all high street retailers, even ones that are not under pressure from online alternatives. House of Fraser collapsed in August, and Mothercare announced the closure of 50 stores this year. Meanwhile, Marks Spencer says that it plans to close 100 shops in the next four years.
Streaming services have put a significant dent in the health of HMV’s market share, and the company is struggling to remain relevant. Some analysts have called its business model unsustainable. The retail crisis has been compounded by the fact that the number of shoppers who headed to high street stores in the UK on Boxing Day fell this year, for the third year in a row. Consumer confidence appears to be falling steadily.