Entertainment store HMV has become the latest high street casualty as it announced it had been forced to call in administrators.
Following discussions among the music retailer’s directors, the company released a statement announcing it was ceasing trading in ordinary shares immediately - and had appointed accountancy giant Deloitte.
HMV, which employs more than 4,000 people, said in a statement: “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. The directors of the company understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business.”
In the run-up to Christmas HMV’s boss Trevor Moore warned the entertainment group was in trouble as he revealed the chain was in talks with banks over its future following worse-than-expected trading over the festive period. The chief executive said market conditions suggested the group, which has 238 stores in the UK and Ireland, would fail to meet expectations for the year to April, so would not meet the terms of its bank loans.
HMV said like-for-like sales fell 10.2% in the 26 weeks to October 27, last year, as its pre-tax loss narrowed to £36.1 million, compared to £50.1 million the previous year. Shares tumbled 39% after the dismal results were published, giving the retailer a market value of just £10.1 million.
The music chain has 11 stores in the north including one at Derry’s Foyleside Centre