Jan 15 2013 By Cheryl Mullin
AILING music chain HMV has lost its battle for survival in a devastating blow for the British high street and more than 4,000 staff.
The appointment of Deloitte as administrator to the 92-year-old business comes after the failures of Jessops and Comet caused the closure of 422 stores and loss of more than 8,000 jobs.
HMV’s 238 outlets will remain open while Deloitte attempts to find a buyer for some or all of the business, although it is likely that there will be widespread store closures as a result of the collapse.
The company’s administration also means that vouchers and gift cards, many of which were given as Christmas presents, will be worthless.
Squeezed by internet retailers and supermarkets, whose scale has enabled them to offer CDs and DVDs at cheaper prices, HMV’s boss Trevor Moore warned before Christmas that the entertainment group was in trouble.
Mr Moore said the group would fail to meet expectations for the year to April and that it would breach the terms of its loan agreements later this month.
Suppliers including Universal Music came to HMV’s rescue in January 2011 with a deal which helped the retailer shed some of its huge debt pile.
But according to the Financial Times, they balked at a request last week from HMV for about £300 million in additional financing to pay off its bank debt and fund an overhaul of the company’s business model.