37 more HMV stores to close in the UK

Wednesday 20 February 2013 15.33
Another 464 HMV staff to lose their jobs in the UK
Another 464 HMV staff to lose their jobs in the UK

Another 464 jobs face the axe at music chain HMV in the UK after administrators announced the closure of a further 37 stores.

Deloitte said the stores would close over the next four to six weeks and would probably lead to all affected staff being made redundant.

It said it would try to relocate employees to other stores where possible. Stores to close include HMV outlets at Heathrow Airport.

The blow will leave around 116 stores in the HMV chain, after Deloitte previously said 66 stores would close, affecting nearly 1,000 staff.

Earlier this month, the receiver to HMV Ireland confirmed that 300 staff will be made redundant and the chain's 16 stores will remain closed.

Deloitte said all the Irish stores were loss-making and it was not possible to attract a buyer.

The latest store closures in the UK come after 60 staff were let go by Deloitte across HMV's head office network in London, Marlow and Solihull nearly two weeks ago, including former HMV boss Trevor Moore.

Around 190 jobs had previously been cut by Deloitte in the chain's head offices and distribution centres.

Nick Edwards, joint administrator at Deloitte, said the decision to shut the stores was made to "enhance the prospects of the restructured business continuing as a going concern".

"We are extremely grateful to the staff for their continued strong support and commitment during an understandably difficult period. All other key stakeholders including suppliers and landlords remain supportive and we appreciate their ongoing assistance," he added.

HMV collapsed into administration last month, but Deloitte said last week that sale discussions were "progressing", as it also announced it had secured stock from most of its suppliers that will see it continue to sell the latest blockbusters and music releases.

It said trading agreements had been put in place so stock could be replenished and it will be able to sell new hits, including the latest James Bond film Skyfall.

Restructuring firm Hilco - the group behind HMV Canada - has already bought the company's debt in a move that has raised hopes of a rescue deal.

HMV had more than 220 stores and 4,120 staff when it hit the wall in January after failing to keep pace with internet rivals and supermarkets, whose scale has enabled them to offer CDs and DVDs at cheaper prices.

Keywords: hmv, deloitte