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.

Latest Stories

15:01
The Back to the Future preview of Secret Cinema has been cancelled

Secret Cinema have cancelled their Back to the Future event for the third night running.

Read more
Planned engineering works could affect your journey this weekend.

There is a relatively minor programme of planned closures on the Tube and Overground network this weekend - but they could still affect your journey. Read on for the lowdown.

Read more
The woman told officers she was raped after a man approached her from behind in Charnwood Road in Uxbridge this morning (Picture: Google StreetView)

A woman was raped by as she walked along a quiet residential street in Uxbridge in the early hours of this morning, say police.

Read more

TOP Stories

15:01
The Back to the Future preview of Secret Cinema has been cancelled

Secret Cinema have cancelled their Back to the Future event for the third night running.

Planned engineering works could affect your journey this weekend.

There is a relatively minor programme of planned closures on the Tube and Overground network this weekend - but they could still affect your journey. Read on for the lowdown.

The woman told officers she was raped after a man approached her from behind in Charnwood Road in Uxbridge this morning (Picture: Google StreetView)

A woman was raped by as she walked along a quiet residential street in Uxbridge in the early hours of this morning, say police.

This touching letter was written in 1914 from an RAF ground crew member just before he went to war [Photo courtesy of RAF Museum]

As the nation remembers the centenary of the First World War, we wanted to share this heartbreaking letter sent by Air Mechanic Raymond Keith Barlow to his ‘mam’ back home just before he leaves for the war. He reassures her that the war will soon be over and asks her to give some money to a relative – but he never made it home.

From September 16, you will no longer have to rely on this piece of blue plastic to get you places [Picture by Dominic Lipinski/PA]

Finally! From September 16, you will be able to use your contactless bank card to pay for journeys on the Tube, the DLR, the Overground and London trams, instead of your Oyster card.

The 'fire ants' were first found in this country when a colony of 35,000 were electrocuted gnawing through wires at a National Trust property in Gloucestershire [Photo courtesy of April Nobile / © AntWeb.org]

Hate creepy-crawlies? Then look away now! There are fears that ‘super ants’ who are attracted to electricity and cause fires are coming to London, after a colony was found in a house in Hendon.

The boy was killed after a collision in St John Fisher Road, near the junction with Kale Road (Picture: Google StreetView)

A six-year-old boy died after being hit by a car in south east London as he walked along the road with his mum yesterday evening.

Promotions

Renault Zoe

The Renault ZOE follows on from the introduction of the electric Fluence ZE and Twizy, but unlike the former, the Zoe was designed from the ground up as an electric vehicle.

Always wanted to create your own beer? Perfect Pint are giving you the chance.

When no simple way to find Real Ale was at hand, 4 Ale enthusiasts got together to allow anyone with a smart phone to find Real Ale no matter where they happened to be, this was the birth of the Perfect Pint app.

The Week subscription offer

London24 have partnered up with The Week magazine to offer you a complimentary issue – delivered free to your door.

Quizzes

How much do you really know about QPR legends like Les Ferdinand? Picture: Neal Simpson/EMPICS Sport

Test your knowledge of QPR’s greatest players with our fantastic legends quiz.

Read more
How much do you know about films in London? (Photo by Fox Photos/Getty Images)

Do you know your Lock Stock from your Long Good Friday, Sliding Doors from Shakespeare in Love?

Read more
How much about this great city do you really know? Take our true Londoner quiz and find out (Photo by Matt Cardy/Getty Images)

Do you know your apples from your pears? Take our Cockney quiz and see how much of a Londoner you really are.

Read more
Guess the manager quiz. Here's a hint, it's not these four.

The managerial merry-go-round spins quickly these days so do you think you’ve got the knowledge to recognise the faces of all these football bosses?

Read more
A normal day at London Liverpool Street station

This quiz is for people who think they know the Tube and rail inside out.

Read more