Administrators Hilco take measures toward saving ailing retail giant
Administrators for HMV have confirmed that they are to close 66 branches of the music and entertainment retailer, resulting in 930 job losses.
HMV, which currently has 220 stores nationwide, confirmed the news this morning (February 7). The decision follows the retailer calling in administrators in January and subsequently selling their £176m debt to restructuring specialists Hilco for £40m.
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.”
“We continue to receive strong support from staff and are extremely grateful to them for their commitment during an understandably difficult period. All other key stakeholders remain very supportive and I continue to be hopeful of securing a future for the restructured business.”
There is currently no set date as to when the chosen stores will be closed. Scroll down to see the list of the 66 branches HMV will be closing.
Meanwhile, HMV’s flagship store on Oxford Street in London could also be sold as part of the debt restructuring process. The Guardian reports that “administrators for the entertainment store will consider offers of £6m–£9m this Friday to take on the lease of the building at 130 Oxford Street, London.” Adding: “Fashion chains H&M, Inditex, the owner of Zara, Japan’s Uniqlo and JD Sports are among the frontrunners for the 50,000 sq ft site.”
The list of HMV stores believed to be closing is:
Ashton Under Lynne
Birmingham (The Fort)
Burton Upon Trent
Edinburgh (Fort Kinniard)
Edinburgh (Gyle Centre)
Edinburgh (Ocean Terminal)
Edinburgh (Princes St)
Edinburgh (St James)
Fulham Glasgow (Braehead)
Spa Leeds (White Rose)
Manchester (Market St)
Stockton On Tees
Walton On Thames
Belfast (Boucher Rd)