Suppliers Rally Around HMV
Suppliers have agreed to keep stocking HMV even though the high street retailer is in receivership and in the process of being stripped down.
With any form of administration, suppliers tend to stop providing stock while the troubled company’s future hangs in the balance.
However, major record and film companies have signed trading agreements that ensure the HMV stores that remain open will be able to offer the latest product.
By the middle of spring, administrator Deloitte is expected to cut HMV’s 200 stores by about one-third.
The flagship store in London’s Oxford Street is for sale at the right price, while last week HMV’s 16 Irish stores were shuttered.
“We are pleased that these agreements are now in place, allowing us to replenish stock and bring in new titles,” Nick Edwards, joint administrator at Deloitte, told BBC News. “The support of suppliers over the past few weeks has been significant and these agreements demonstrate their ongoing commitment to supporting HMV.
“Landlords have been generally flexible and supportive and we hope to continue working closely with them to restructure the business and seek to secure its future,” Edwards added.
One possible purchaser of HMV stores is convenience store chain WM Morrison, which has just bought 49 former Blockbuster video stores, another administration being handled by Deloitte.
To compete effectively against retail giants including Tesco and Sainsbury, Morrison reckons it needs to open 70 new stores by the end of the year.