HMV to Appoint Administrator -
HMV is tittering on the brink of collapse with more than 4,000 jobs under threat as the retail giant prepares to go into administration.
The company's demise comes just days after camera chain Jessops
closed all 187 UK stores and one month after electrical retailer
Comet suffered a similar fate.
A statement released to Music Week reads:
"It is proposed that Nick Edwards, Neville Kahn and Rob
Harding, partners of Deloitte LLP, will be appointed as the
administrators of the Company and certain of its subsidiaries. The
Company's ordinary shares will be suspended from trading on the
London Stock Exchange with immediate effect."
The companies collapse epitomizes the dark days many retail chains find themselves in with HMV being the latest causality in the High Street's ongoing battle with online competition.
In its statement, HMV said:
"The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect."
Last week, HMV announced they were to hold a month-long sale with 25% off prices, sparking concerns that they needed to stock after one of the worst Christmas trading periods for the company. The FT reported that the final straw came when suppliers, including record labels, games developers and film & television companies, declined to help HMV with funding that could help keep them afloat.