THE RETAIL BULLETIN - The home of retail news
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Health & Beauty
General Merchandise
Sports & Leisure
The Papers
Retail Solutions
Food & Drink
HMV calls in administrators

Entertainment retailer HMV has called in administrators following “extremely weak” Christmas sales. The move has put 2,200 jobs at risk.


HMV calls in administrators

Entertainment retailer HMV has called in administrators following “extremely weak” Christmas sales. The move has put 2,200 jobs at risk.

In a statement, the company also blamed a further deterioration in the UK market for DVDs which fell by 30% over this year’s Christmas trading period compared to last year.

A buyer is currently being sought for the business and HMV’s 125 UK stores will continue to trade while negotiations are ongoing with the major suppliers in the music and movie industries.

HMV also went into administration six years ago before it was bought by current owner Hilco Capital for £50 million.

Paul McGowan, executive chairman of HMV and Hilco, said yesterday: “In the six years since the HMV business was rescued from a previous administration process the entire team has been immensely hard-working and engaged with the business and has captured market share from all of its competitors. As such, it is disappointing to see the market, particularly for DVD, deteriorate so rapidly in the last 12 months as consumers switch at an ever increasing pace to digital services.”

HMV also said it had not been immune to challenges facing UK high streets and highlighted how its annual business rates alone represented an anuual cost to the business in excess of £15 million.

McGowan added: “Even an exceptionally well run and much loved business such as HMV cannot withstand the tsunami of challenges facing UK retailers over the last 12 months on top of such a dramatic change in consumer behaviour in the entertainment market.”



Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News


Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Conference
The HR Summit 2019
The HR Summit 2019
8 October 2019
Hallam Conference Centre, London W1W 6JJ
The 11th HR Summit 2019, Hallam Conference Centre, 44 Hallam St, Marylebone, London W1W 6JJ
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy