HMV UK Goes into Administration
Published Jan 14, 2013HMV's well-publicized struggles in recent years have included selling all of its Canadian locations, shutting UK stores and shedding its Waterstone's book chain. As if things couldn't get any worse for the music retailer, the UK company looks to have finally collapsed, since it is poised to go into administration, putting some 4,500 jobs in Britain at risk.
As ITV reports, 92-year-old HMV has released a statement confirming that the company will cease trading on the stock market as of tomorrow morning (January 15). Deloitte will be apparently appointed the administrator, meaning that the future of the company's UK stores is in jeopardy.
The statement reads, "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."
HMV has been facing mounting debts in recent years, and reports indicate that some of the company's suppliers refused to provide last-minute financial assistance.