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Old 01-14-2013, 06:40 PM   #1
EndTheRapture51
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HMV goes into administration

http://www.bbc.co.uk/news/business-21021073

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Music and DVD chain HMV, which employs about 4,350 staff, has confirmed it will appoint an administrator, making it the latest High Street casualty.

Deloitte will run the 239-store chain while it assesses prospects for the business and seeks potential buyers.

Trading in HMV shares on the London Stock Exchange is being suspended, the company said in a statement.

Started in 1921, HMV became one of the biggest names on the High Street, but has struggled against online retailing.

The company has been in financial crisis for more than a year, and on 13 December warned that it faced a possible breach of bank loan agreements.

In a statement late on Monday the company said: "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..."
'Month-long sale'

The statement continued that the board "understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business".

The retailer, whose first store was opened in London's Oxford Street in 1921, has faced intense competition from online retailers, digital downloads, and supermarkets in recent years.
Continue reading the main story
“Start Quote

The bottom line is that there is no real future for physical retail in the music sector”

Neil Saunders Retail analyst

As its debts mounted, HMV sold off parts of the business, notably its live entertainment arm and the Waterstones book chain.

Last week, HMV announced a month-long sale with 25% off prices, sparking worries that the company needed to shift stock after poor Christmas trading.

The company's troubles underline the gloom on the High Street and come after a string of high-profile failures, including the closure last week of camera retailer Jessops and Comet's collapse last year.
'Inevitable'

Neil Saunders, the managing director of retail analyst Conlumino, said he felt the appointment of administrators at HMV "was always inevitable".

He said: "While many failures of recent times have been, at least in part, driven by the economy, HMV's reported demise is a structural failure.

"In the digital era, where 73.4% of music and film are downloaded, HMV's business model has simply become increasingly irrelevant and unsustainable.

"Coming hard on the heels of the failure of Comet and Jessops this latest potential administration demonstrates the significant pressure on retailers, many of which are contending with a consumer downturn alongside structural shifts in the sector."

He said that although the HMV brand "certainly has some value" for potential buyers, the current business model was dead.

"The bottom line is that there is no real future for physical retail in the music sector," he said


Opinions on this? I go into HMV to have a browse sometimes but generally it's just really really overpriced. If I really want a physical record, I'll buy it online directly from the artist, or from an indie record store. As for DVDs and games, well Amazon is so much cheaper, and with free delivery you can't go wrong.
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Old 01-14-2013, 06:42 PM   #2
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That sucks. If I have spare time in town I usually walk around HMV, plus I buy films/games semi-often.
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Old 01-14-2013, 06:50 PM   #3
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If they weren't so ridiculously overpriced, people would shop there and they wouldn't have this problem. It's simply not acceptable to charge £32 for a single album or £80 for a 4 film DVD set.
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Old 01-14-2013, 07:00 PM   #4
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Oh I got quite a few albums that were two for £10, didnt think that was too expensive. Although some albums could be £10+ alone and that is a little pricey really.
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Old 01-14-2013, 07:02 PM   #5
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Old 01-14-2013, 07:10 PM   #6
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I've never thought of them as too expensive. Sure, for bigger purchases like box sets and games I can get a better price on amazon, but I always go there for CDs and DVDs when Christmas shopping or when wandering around town.
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Old 01-14-2013, 07:15 PM   #7
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There's still a future for physical media in the industry - just not really over priced physical media.
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Old 01-14-2013, 07:27 PM   #8
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About time. They've been dicing with death for ages because they refused to adapt.
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Old 01-14-2013, 07:28 PM   #9
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I'll be sad at it's passing. But, like everyone has already said, it couldn't really continue selling at such high prices as it did.
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Old 01-14-2013, 07:30 PM   #10
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Quote:
Originally Posted by metacarpi
There's still a future for physical media in the industry - just not really over priced physical media.


there's a high cost to low prices.
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Old 01-14-2013, 07:32 PM   #11
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There are a few independent record stores I can get to which stock better stuff than HMV and for cheaper. This still made me a bit sad though.
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Old 01-14-2013, 07:35 PM   #12
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Yeah, that sucks.

I blame the internet.

Oh well.

I guess it's like Tower Records going bust on the UK scene.
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Old 01-14-2013, 07:37 PM   #13
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That sucks, I did like HMV, but it was inevitable, digital sales and even only sales of physical copies were always going to kill off HMV given the prices they charged. Also related to this, I couldn't help but facepalm big time when someone on Facebook tried to blame the Torries for "taking away our entertainment" because of HMV going into administration.
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Old 01-14-2013, 07:47 PM   #14
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I can't remember the last time I bought something from them. I went in to browse every now and then, but just went out empty handed thinking "I'll try and see how much that is online," if I'd seen anything interesting.
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Old 01-14-2013, 07:47 PM   #15
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It's gone into administration? Are you HMV positive?
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Old 01-14-2013, 07:52 PM   #16
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It's been coming for a long time. That is a lot of jobs to fill
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Old 01-14-2013, 07:53 PM   #17
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Quote:
Originally Posted by AdamDK
That sucks, I did like HMV, but it was inevitable, digital sales and even only sales of physical copies were always going to kill off HMV given the prices they charged. Also related to this, I couldn't help but facepalm big time when someone on Facebook tried to blame the Torries for "taking away our entertainment" because of HMV going into administration.

I thought you were saying that they blamed Torres for it then. Poor bloke.
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Old 01-14-2013, 07:58 PM   #18
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I thought you were saying that they blamed Torres for it then. Poor bloke.


Hahaha now that would be quite something.
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Old 01-14-2013, 08:50 PM   #19
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Physical copies should be more expensive since the physical materials used and the fact media sold physically comes at a higher quality than digital mp3's
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Old 01-14-2013, 08:52 PM   #20
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does anyone actually buy CDs anymore? i only buy vinyl or digital.
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