Competition From Online Retailers Forces UK Music Retailer HMV Into Administration

hmv

Renowned UK music store HMV has gone into administration after 91 years of selling music, film and video games from high street stores. Many have cited the serious competition from online competitors as the primary reason behind HMV’s huge financial losses.

The 239-store chain which employs more than 4,000 people in the UK has announced that accountancy firm Deloitte has been appointed as a financial administrator to determine how its assets will be disposed.

The trading of shares in HMV has also been suspended until the outcome of the administration process is complete. It is expected that the entire company will end up being sold to restructuring specialists who will take on the mammoth task of trying to scale down the HMV’s huge losses. However, if Deloitte cannot find a suitable buyer, the thousands of employees that work for the chain risk being made redundant.

The stores will remain open until the company’s future has been determined, however HMV has stated that they will no longer be accepting gift cards or vouchers as payment nor issuing any new ones. This decision is likely to anger loyal customers, many of whom gave and received gift cards over the Christmas period that they are yet to redeem.

HMV has been one of the UK high street’s most prominent retailers in music, DVDs, video games and their accessories for the best part of a century now – after opening their first store in the world-renowned Oxford Street back in 1921. Its demise is just the latest in a string of big name closures in the UK electronics industry because of the harsh competition from online retailers.

So it seems “His Master’s Voice” may well be silenced forever. Reaction to the news has been mixed, with people taking to social networking platforms to voice their opinions. Many have commented on the sadness at the loss of HMV, nostalgically reliving their memories of browsing through their racks with excitement. Others have said it was inevitable and blamed the establishment for not keeping up with the times and failing to meet their customer’s needs.

What do you think about HMV going into administration? Leave a comment and let us know.

Source: BBC

About Sheniz Raif

I am, and think I have always been, a writer. I’ve been scribbling stories since I was old enough to hold a pen and thoroughly enjoy using my words to make people laugh or inspire them. I love going to gigs and am a professional groupie for a couple of awesome bands. I am an avid fan of socializing, football, film, and refusing to grow up! I’m also a proud member of the BODO UK team!