HMV to close Guernsey fulfilment warehouse
26 March 2012 | by The Retail Bulletin
Entertainment retailer HMV is to close its Guernsey fulfilment warehouse and move its operation back to the mainland UK.The move comes after the Channel Islands lost a High Court appeal to prevent the scrapping of Low Value Consignment Relief which provides tax relief on cheap goods such as compact discs and video games sent from Guernsey and Jersey.
The UK High Court rejected suggestions by the islands that the removal of the VAT relief would discriminate against them.
An HMV spokesperson said: "For our online offers to remain viable and attractive to shoppers in what will continue to be a highly competitive market, we need to seek greater business synergies and to further reduce our online operating costs.
"We have concluded that the only way we are able to realistically achieve this is by consolidating our internet fulfilment into a single site at our existing UK distribution centre in Merlin Park, Birmingham.
"This is not a decision we have taken lightly, particularly as we have enjoyed a productive relationship with Guernsey."
The closure of the warehouse on 27 July will put 46 jobs at risk.
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