HMV faces closure, 4,000 jobs at risk

HMV could be the second household name to go under this year, following closure of camera chain Jessops with the loss of 1,300 jobs

Bs_logoImage
Press Trust of India London
Last Updated : Jan 29 2013 | 2:34 PM IST

Global music chain HMV is on the brink of collapse as Royal Bank of Scotland and Lloyds have refused to lend further, a development that will cost 4,000 jobs in the entertainment company, media reported here.

 ".... HMV’s banks -– state-backed Royal Bank of Scotland and Lloyds -– said they were unwilling to go on lending it money," said MailOnline.

"The writing had been on the wall since the run-up to Christmas, when dire sales figures forced the firm to admit it might breach the terms of its bank loans," it said.  

HMV could be the second household name to go under this year, following closure of camera chain Jessops with the loss of 1,300 jobs.

It is still possible that a 'white knight' buyer could ride to the company's rescue at last minute, buying part or all of its 230-strong network of stores, the report said.

If not it will mean the end of a name that has graced the high street since 1921. There was no sign of a saviour for HMV today, after US-based investment firm Apollo Management walked away from takeover talks, the media report said.

Shoppers have spurned physical copies of music, film and books for downloads from websites like iTunes and Amazon.

The report quoted Labour business spokesman Chuka Umunna as saying that "for the sake of HMV's employees, we hope a way can be found to keep the business going – the demise of this institution would be a body blow to British retail".

Administrators could opt to keep stores open during the process in order to raise funds by shifting as much stock as possible, the report said.

HMV failed to keep pace with the digital revolution, as shoppers turned to online retailers such as Amazon. It has also been under attack from supermarkets such as Tesco and Sainsbury, which are able to offer discount DVDs and CDs thanks to their size, it added.

Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories

  • Over 30 subscriber-only stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jan 15 2013 | 4:38 PM IST