HMV set to go into administration

06:36 15 January 2013

The entertainment giant is set to appoint administrators. Picture: Yui Mok/PA Wire

The entertainment giant is set to appoint administrators. Picture: Yui Mok/PA Wire

The jobs of HMV workers in London are currently at risk after the entertainment store called in administrators.

Following discussions among the music retailer’s directors, the company last night released a statement announcing it was ceasing trading in ordinary shares immediately, and was appointing accountancy giant Deloitte to take control.

HMV, which employs more than 4,000 people, said in a statement: “The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection, and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect.

“The directors of the company understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business.”

In the run-up to Christmas HMV’s boss Trevor Moore warned the entertainment group was in trouble as he revealed the chain was in talks with banks over its future following worse-than-expected trading over the festive period.

The chief executive said market conditions suggested the group, which has 238 stores in the UK and Ireland, would fail to meet expectations for the year to April, so would not meet the terms of its bank loans.

Mr Moore joined the group from camera chain Jessops, which itself went into administration last week at the cost of 1,370 jobs across its 187 stores.

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.

Its struggle has seen it sell off several parts of its business, including the Waterstones book retailer, to reduce its debt pile, while closing loss-making stores.

HMV also offloaded its Hammersmith Apollo venue for £32 million, which enabled it to thrash out a new deal with lenders.

Sign up for our news alerts today!

Our editors' picks for the day's top news delivered to your inbox or phone.

Sign up for email alerts Sign up for mobile alerts
1
2 3 4 5 6
7

Latest business news

Friday, March 27, 2015
Kboard

Thought phone buttons were hard work? Now people who can’t be bothered to use a touchscreen either can streamline their conversations with a new app.

Sunday, March 22, 2015
Fabric club in Charterhouse Street

Police issue warning about bad batch of MDMA at Farringdon club threatened with closure last year.

Thursday, March 19, 2015
Tunnelling breakthrough at Liverpool Street 'station box'

Tunnelling work in London’s long-awaited Crossrail ‘super tube’ construction is now more than nine-tenths complete.

Monday, March 16, 2015
Fire damage at what is thought to be Loungelover in Shoreditch - London Fire Brigade

Candles left lit inside a doll’s house have been blamed for a fire that caused damage to the ground floor and roof of a Shoreditch nightclub on Friday morning.

Wednesday, March 11, 2015
Broadband speeds in some parts of London are shocking (Photo by Michael Bocchieri/Getty Images)

Say goodbye to streaming Netflix, downloading music or a spot of online gaming if you live on this street in Brixton - which has officially the slowest broadband in central London.

Friday, March 6, 2015
The creators say phones offer 'amazingly more intimate experiences' and want to get users away from their computers (Picture: Spark/Dan Ross)

A new dating app to rival Tinder allows passengers on the Tube who share that brief moment to act on that spark and find love on the Underground.

The lights went off and the cameras came out.

Call it the X Factor, star quality, even ‘something’ but whatever ‘it’ is Ed’s not got it, says the PM.

The Ukip leader doesn’t want to be too scripted for the seven-way televised encounter.

London Bloggers

Tuesday, February 3, 2015
[Photograph by John Phillips/PA Wire]

Often referred to as a melting pot, London is a city renowned for its rich blend of cultures.

Monday, December 22, 2014
Around 25 per cent of the population self-identity as having no religion yet still enjoy the fun of Christmas (Photo by Oli Scarff/Getty Images)

It’s Christmas time. We know this by the light-adorned streets, the mobility hazard posed by boxes of Quality Street, Roses and Celebrations in every supermarket’s entrance and, of course, the incessant radio-plays of Mariah Carey’s All I Want for Christmas Is You.