In total, 16 'loss-making' stores will be permanently shut
The receivers at HMV Ireland have permanently shut all 16 of the music retailer’s Irish stores.
According to The Guardian, all 300 staff of HMV’s Irish operation will now be made redundant. The company went into receivership in Ireland on January 16, when staff were temporarily laid off with immediate effect. Unlike administration, the receivership process in Ireland is not aimed at keeping the company going.
“All stores were loss making and it was not possible to attract a purchaser,” Deloitte the Irish receiver said in a statement. “The marketplace is very difficult given competition from web-based retailers and digital downloads, compounded by a number of other factors including high levels of rent,”
Last week (February 7), administrators for HMV in the UK confirmed that they were to close 66 branches of the music and entertainment retailer, resulting in 930 job losses.
In a statement about the branch sales, the Joint Administrators said: “No fixed date is set for the closure of these stores which will continue to trade in the meantime. However, it is expected that closures will take place over the next one to two months.”
Meanwhile, Nick Edwards, Joint Administrator, commented: “As part of our ongoing review of HMV’s financial position, we have now completed a review of the store portfolio and have identified 66 loss making stores for closure. This step has been taken in order to enhance the prospects of securing the business’ future as a going concern.”