HMV Closures Up To 103

The administrators for HMV have axed another 37 outlets and it’s looking likely that about half of the 223-store retail chain will be shuttered.

Earlier this month, Deloitte – which is trying to sell HMV as a going concern – said it intended to shut 66 shops. That would mean the loss of 1,000 jobs.

The 37 new closures, which include all four sites at London’s Heathrow Airport, mean the total number of job losses is now close to 1,500.

The flagship store in London’s Oxford Street is still open, although UK newspapers have speculated that Deloitte has received some interest in it.

“As part of our ongoing review of HMV’s financial position, we have undertaken a further review of the store portfolio and have identified an additional 37 stores for closure,” said Deloitte administrator Nick Edwards. “This step has been taken in order to enhance the prospects of the restructured business continuing as a going concern.

“Together with the previously identified 66 closures, this restructuring will result in a residual portfolio of some 116 stores.”
HMV, which owes about £170 million ($260 million) to banks led by Royal Bank of Scotland and Lloyds Banking Group, called in the administrators when poor Christmas sales saw its share price drop to next to nothing.

Restructuring expert Hilco, which bought HMV Canada for £2 million in June 2011, has subsequently bought the debt.
Major music and film companies have agreed to keep stocking HMV even though the high street retailer is in receivership and in the process of being stripped down.