HMV has thrown in the towel after years of struggling to fend off nimbler rivals by calling in administrators in a move which puts more than 4,000 jobs in jeopardy.
Following a board meeting that lasted several hours, HMV directors, led by chairman Philip Rowley and chief executive Trevor Moore, decided the business could no longer trade without insolvency protection.
Source: Sky News
HMV has become the second retail chain to enter administration, following the decision by photography chain Jessops to do the same earlier in January.
The business, which sells CDs, DVDs and video games, says that as a result of ‘current market trading conditions’ it faced ‘material uncertainties’ meaning that it would likely not be able to meet with banking covenants at the end of the month.
Accountancy firm Deloitte has been appointed as administrator and will now keep HMV’s 239 UK stores, supporting some 4,300 workers, open while it pursues potential buyers.
Possible job loss: 4500