Owner Hilco cites a ‘tsunami’ of retail challenges as KPMG called in as administrators.
HMV has called in the administrators for the second time in six years, with owner Hilco citing a ‘tsunami’ of retail challenges including business rate levels and the move to digital.
KPMG has been called in is to act as administrator, with the move involving 2,200 staff and 125 stores.
The stores will continue to trade while negotiations are held with major suppliers and potential buyers are sought.
“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,” said Paul McGowan, executive chairman of HMV and Hilco.
HMV had undergone a turnaround since being saved by Hilco in 2013. The retailer sold 31% of all physical music in the UK in 2018 and 23% of all DVDs and Blu-Rays. Its market share grew month by month throughout the year.
Kim Bayley, ceo of the Entertainment Retailers Association, said that it is conceivable a turnaround will happen once again.
She commented: “The fact is the physical entertainment market is still worth up to £2bn a year so there is plenty of business there. For the sake of HMV’s staff, customers and suppliers, we are very much hoping HMV can turn things around again.”
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