After 91 years of trading, HMV is to appoint an administrator putting 4,000 jobs at risk. The music and film retailer has struggled to compete with the advent of digital music downloads. Deloitte will keep all 239 stores in the UK and Republic of Ireland open whilst they assess the viability of the business and search for a prospective buyer.
A statement,issued by the company last night 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 and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect.”
The big question must be can the business be salvaged and continue on the scale it has in the past? I feel that a physical presence on the high street must surely appeal to music labels who have had their margins eroded by digital downloading, but I fear if the business can be salvaged it will be at the expense of cutting the number of branches.