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Music retailer HMV could enter administration - Sky News

Music retailer HMV could enter administration - Sky News
FILE PHOTO: Pedestrians walk past an HMV shop in central London, Britain December 28, 2018. REUTERS/Peter Nicholls -
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PETER NICHOLLS(Reuters)
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(Reuters) – HMV Retail Ltd, Britain’s most high-profile entertainment retailer, could enter administration for the second time in six years and cut 2,200 jobs, Sky News reported on Friday, citing sources.

Sky News reported that the company, which gave the Beatles one of their first big breaks, filed a notice of intention to appoint administrators last week after talks with its suppliers.

The report also said that the company, which has more than 120 stores across the UK, had been in talks with leading names in the recorded music industry for funding.

HMV, opened on London’s Oxford Street by English composer Edward Elgar in 1921, was rescued in 2013 when restructuring specialist Hilco bought it in a deal worth about 50 million pounds.

HMV, made famous by the iconic image of the ‘dog and trumpet’, could not be immediately reached for comment.

More traditional players in the music industry have been hit by the growing popularity of online streaming services like Spotify and Apple Music, which this year became the recording industry’s single biggest revenue source.

Britain’s retailers have also faced uncertainty over Brexit, rising labour costs, higher business property taxes and unseasonably warm weather.

These companies had been hoping that Christmas would revive spending after a bleak year that has seen a string of chains go out of business or announce shop closures.

However, the number of British shoppers hitting the post-Christmas sales dipped this year, offering no relief for struggling stores that had already discounted heavily to encourage spending in the run-up to the holiday.

(Reporting by Samantha Machado in Bengaluru; Editing by Sai Sachin Ravikumar and Sunil Nair)

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