Tue, 21st May 2019
Around 2,200 jobs are at risk as KPMG has been appointed the administrator of the high street music store HMV. The retailer has announced that it will be entering administration for the second time in five years.
If the retailer, that has been trading for 97 years, collapses then that could see the closure of 128 shops at a cost of 2,200 jobs. The administrators plan to continue to operate all stores, while exploring options to support the business. Among the options is a possible sale.
The retailer was bailed out by Hilco in 2013, as part of a £50 million deal. Will Wright, joint administrator and a partner at KPMG, said that for decades, HMV has held a role as one of the most iconic high street names. He said that he understands that it has continued to outperform the wider market decline in the sale of both physical music and video, and that it has grown a profitable ecommerce business, but that the company has still suffered from the growth of digital distribution which has swept across the entertainment industry.
He also noted that HMV has had to contend with the same pressures that so many other retailers have faced, including reduced consumer confidence, pressure from business rates, and pressure from rising business costs.
KPMG plans to continue to operate the store over the coming weeks, and it will continue to honour gift cards as usual for as long as the business is still trading.