Music over for HMV as retailer calls in administrators

Mon Jan 14, 2013 6:07pm EST
 

By Neil Maidment and Rosalba O'Brien

LONDON (Reuters) - Music and DVD retailer HMV said it was calling in the administrators after a last-ditch attempt to secure funding failed, bringing the curtain down on one of Britain's best-known high street retail stores.

The accounting firm Deloitte has been named as the administrator and intends to keep the business running while it seeks a potential buyer, HMV said in a statement late on Monday.

The company, which still has 239 stores in the UK and Ireland with around 4,350 staff, has struggled amid declining music, DVD and games markets.

In December, it warned that a breach of its banking agreements was likely and it had been in talks with its banks to remedy the breach, it said on Monday.

"However, 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," HMV said.

The company's chief executive is Trevor Moore, who joined HMV last year from camera specialist Jessops, which last week also went into administration.

The economic downturn and tough government austerity measures have hit consumer spending and confidence in Britain, and a string of once well-known retail names has disappeared in recent years.

MUSICAL POWERHOUSE   Continued...