HMV Collapse: Early Interest In Retailer

Written By Unknown on Rabu, 16 Januari 2013 | 18.56

The administrator for collapsed HMV has already had "very positive" expressions of interest in the entertainment retailer.

Deloitte, which was formally appointed on Tuesday evening, told Sky News a few parties had made contact in the wake of the chain's demise.

While all 223 UK stores are still trading, the administrator confirmed its review of the business was continuing and there was no prospect of the company's decision to stop accepting gift cards or vouchers being overturned.

However the "blue cross sale", which began last weekend, would remain in place.

In its initial statement last night confirming it was now running HMV, Deloitte said it was actively seeking a buyer.

Joint administrator Nick Edwards said: "HMV is an iconic retailer and continues to be a very popular brand, but as we have seen with many high street retailers, the market is changing rapidly and conditions are currently very tough.

People walk past a HMV store in central London HMV's 'blue cross sale' will continue in stores across the UK

"Following our appointment, we are working closely with management and staff to stabilise the business in order to continue trading whilst actively seeking a purchaser for the business and assets.

"We appreciate the cooperation and support from the staff, customers, suppliers and landlords at what is clearly a difficult time."

HMV employs 4,123 staff and analysts say it is inevitable that some will lose jobs, even if the chain is bought out.

The retailer had long been criticised for an over-exposure to the high street and its late move into online trading. The consumer spending squeeze only exacerbated the shift in shopping habits and it missed the terms of its bank loans as a result.

Nevertheless Trevor Moore, the group's chief executive, told Sky News on Tuesday afternoon that he was "absolutely confident" about the future of HMV but added: "It does require a number of significant changes in the business, and those changes we're very clear about."

He said: "We would hope to find a prospective buyer that could work with us to enable me to deliver those changes and ensure that HMV - which is one of the consumer's 10 most favourite stores in the UK, remains on the high streets that we operate in."


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