HMV on the brink of administration with 2,200 jobs at risk
PUBLISHED: 09:52 28 December 2018 | UPDATED: 11:40 28 December 2018
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Music store HMV could be the first high street casualty of 2019, as the retailer has announced it is on the brink of going into administration.
The group, which has stores in Norwich’s Chapelfield, as well as in King’s Lynn, has filed a notice of intention to appoint administrators amid a cash crisis.
The store currently trades from 130 outlets, and employs more 2,200 members of staff.
David Thompson is a regular customer at the Norwich HMV, he said: “It’s not a surprise. They’re overpriced and with the likes of Amazon and other online music why would people shop here?
“I guess they’ve had to keep their prices up to stay in business.”
The Fakenham resident continued: “I come in here once every couple of weeks to buy vinyl albums. I like the experience of going in and seeing the physical copy before I buy.
“It’s a shame, but they’ve been in trouble before and they’ve only reduced their offering.”
HMV previously made headlines having collapsed into administration in 2013 before being bought out by current owners Hilco.
KPMG is understood to be waiting o undertake the process, with an administration set to be announced as early as Friday.
The failure of another major high street name before the year is up would cap a miserable 12 months for the retail sector.
The likes of Poundworld, Toys’R’Us and Maplin have all gone bust this year, while heavyweights Marks & Spencer and Debenhams have announced plans to shutter hundreds of stores.
Several others - including Superdry, Carpetright and Card Factory - have all issued profit warnings.
Traditional retailers have been battling the rise of online shopping, higher costs and low consumer confidence as shoppers rein in spending amid Brexit uncertainty.
KPMG and Hilco, which also owns Homebase, declined to comment.