Tue, 01 Jan 2019 | ADMINISTRATION
His Master’s Voice, more commonly known as HMV, has collapsed into administration. Insolvency experts from KPMG have been appointed as joint administrators to find a buyer.
The music and film retailer accounts for nearly a third of all physical copies of music sales in the UK and a quarter of all DVD sales. The company employs altogether 2,200 staff and is expected to continue to trade while negotiations are held with major suppliers and options to find a new buyer for the 97-year-old retailer is explored.
Will Wright from KPMG said: "Over the coming weeks, we will endeavour to continue to operate all stores as a going concern while we assess options for the business, including a possible sale.
"Customers with gift cards are advised that the cards will be honoured as usual, while the business continues to trade."
Executive chairman of HMV and its owner Hilco Capital, Paul McGowan, pointed out that HMV sold 31 per cent of all physical copies of music in the UK in 2018 and 23 per cent of all DVDs and Blu-rays. In fact, its market share had grown month by month. Unfortunately, the decline in the CD and DVD market had made it tough.
McGowan said: "Even an exceptionally well-run and much-loved business such as HMV cannot withstand the tsunami of challenges facing UK retailers over the last 12 months on top of such a dramatic change in consumer behaviour in the entertainment market."
It seems all retailers are facing challenges in the market as the festive period had been extremely weak, with sales of DVDs diving by 30 per cent.
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