The once popular music store, which was a haven for 90s teens buying their first singles and albums, has become the latest casualty on the high street, announcing earlier this week that it was to go into administration.
The company, which has around 250 stores nationwide, made the announcement claiming that like-for-like sales were down 10.2 percent for the half year to 27 October and the Christmas period had not helped push profits up.
Trevor Moore, the former Jessops boss who took over as HMV CEO in August, said in a statement that the company had held discussions with its banks over the weekend but failed to agree on new terms for its debt.
“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,” he said.
Michael Perry, a retail analyst at Verdict, said the chain had been “fighting a losing battle for some time,” pointing out that it hadn’t been able to compete with the likes of Amazon on either price or range, while grocers had also been slowly claiming market share.
“Illegal downloading has also had a part to play, particularly over the last few years as consumers look to save money. To many, the monetary benefits of downloading outweigh the risk of being caught, resulting in online piracy continuing fairly unabated,” he told ChannelEye.
“The same can also be said for legal streaming services such as Spotify or Netflix, which have largely negated the need to purchase physical media for many consumers.”
And the public are also suffering. Not only are there around 4,500 jobs at risk, but customers are left with vouchers that they can’t use.