Dec 28, 2018

HMV files for administration for second time in six years

HMV has become the first victim of a Christmas slump on the UK high street, with the music retailer filing for administration for the second time in six years after "Extremely weak" trading. Paul McGowan, executive chairman of HMV and its owner, Hilco Capital, said the retailer could not withstand the "Tsunami of challenges facing UK retailers over the past 12 months on top of such a dramatic change in consumer behaviour in the entertainment market". House of Fraser filed for administration this year before being acquired by Sports Direct, while other retailers, including Homebase, Mothercare, Carpetright and New Look, have pursued company voluntary arrangements - an insolvency procedure that allows ailing businesses to restructure their debt payments. HMV was rescued out of administration three years ago by Hilco, which also owns Homebase, the ailing DIY and homewares retailer. This summer creditors of Homebase approved a plan for the retailer to shut 42 stores across the UK. Kim Bayley, chief executive of the Entertainment Retailer Association, said HMV had enjoyed a "Remarkable turnround" since its first administration filing three years ago.

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