UK Music retailer HMV has announced as of yesterday that it has entered administration.
The retailer will no longer be trading its shares on the London Stock exchange as well as entering administration it was also revealed. The administrator for HMV is the financial firm Deloitte UK. HMV will still have its stores open for the time being, but the retailer also announced that they will no longer be accepting gift cards from customers.
In a statement to BBC news, HMV said “The board regrets to announce that it has been unable to reach a position where it feels comfortable to continue to trade outside of insolvency protection.” HMV also added that the “intention of the administrators, once appointed, [are] to continue to trade whilst they seek a purchaser for the business.”
In recent years, HMV has moved from being a music retailer to that of a entertainment arts retailer. They’ve diversified themselves since the rise of online retail to include selling technological hardware, clothes, books and video games to the extent that HMV is usually a big contender for pre-order exclusives. UK retailer GAME also entered administration early last year but was saved pretty much at the last minute from the brink. Ever since Amazon, iTunes and perhaps Play.com (at least in the UK) grew into big, household names, HMV has struggled to keep up with the competition and also closed half of its stores a year or two ago.
Managing director for the retail analyst Conlumino, Neil Saunders said that with the decline of HMV, their dive into administration “was always inevitable” as “the bottom line is that there is no real future for physical retail in the music sector”. However, Saunders did recognise that the HMV name “certainly has some value” for those looking to buy despite the current business model in use by HMV landing them into administration.
George Sinclair is an editor for Analog Addiction, the home of the latest news, reviews and previews. You can follow George on Twitter and his blog on IGN. Don’t forget to follow the OFFICIAL Analog Addiction Twitter!