16:42 15 January 2013
HMV, the 92-year-old entertainment retailer, is the next high street store to go into administration. This could pose a threat to thousands of jobs if HMV’sfuture is not secured, as some 4,300 members of staff work for the firm.
Deloitte, an accountancy company, has been named as administrator for HMV. The news on their administration comes after sales were held at HMV, although it is believed this was normal conduct which was carried out in order to shift products, according to reports.
The reason for this latest high street casualty is thought to be because of competition coming from online sales, as many people are turning to companies on the internet when buying products. This includes the purchasing of music, films and computer games.
Reportedly the company suffered a 10per cent decrease in sales from late May to late October 2012, with their debt increasing to £176million for the same period.
HMV has said that business will continue while a buyer is being sought, Its Chief Executive, Trevor Moore, took over from Simon Fox early September, 2012.
This follows the news on Jessops, the photographic retailer, and its store closures after it went into administration last week. Comet also closed its doors last year as it suffered from a lack of business.
Some people are blaming the likes of supermarkets as well as online companies, as HMV are popularly known for selling CD’s, DVD’s as well as gaming products.
HMV shares fell to 1.1p this week. The firm also has operations in Hong Kong and Singapore.
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