HMV has slumped into administration for the second time in six years, blaming its collapse on a “tsunami” of retail challenges.
The music and film retailer has called in KPMG to handle the process, leaving the future of its 125 stores and 2,200 workers hanging in the balance.
HMV confirmed the news this afternoon, hours after news emegred that it had filed a notice of intention to appoint administrators last week.
HMV tumbled into administration in 2013 but was rescued by restructuring specialists Hilco.
But despite a revival of physical sales in some categories, particularly vinyl records, HMV has struggled amid the shift to digital streaming rivals such as Netflix, Spotify and Amazon Prime’s video and music services.
Paul McGowan, executive chairman of HMV and its owner Hilco Capital, told the BBC: “Even an exceptionally well-run and much-loved business such as HMV cannot withstand the tsunami of challenges facing UK retailers over the last 12 months on top of such a dramatic change in consumer behaviour in the entertainment market.”
He added that physical sales of CDs, DVDs and blu rays are expected to fall 17% in 2019, which meant it was no longer possible to continue trading the business.
HMV’s collapse comes just weeks after Sports Direct tycoon Mike Ashley warned that November had been the “worst on record”.
Fears over December trading were heightened when Springboard revealed yesterday that Boxing Day footfall had slumped for the third year running.
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