As reported by the BBC, HMV has become the latest high street chain to suffer financial turbulance as it prepares to appoint accountancy firm Deloitte to handle adminstration proceedings.
All 239 stores will remain open as the administrators assess the situation and search for a potential buyer, however gift vouchers will no longer be accepted.
HMV stated: “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 intedns to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect.
…[the board] understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business.”
It’s been a tough year for entertainment companies in Britain. Game entered the same bankruptcy proceedings in 2012 and electrical giant, Comet collapsed towards the end of the year.
HMV has been a prominent figure on the UK high street since 1921 and this is a blow to music, film and gaming fanatics alike. The entertainment specialist’s struggle to match online competitors, such as Amazon, has been suggested as one of the reasons behind their recent decline.