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Deloitte administrators to close further 37 HMV stores

The further closures will run concurrently with the recently announced 66 store closures

20 Feb 2013 Accountancy Age

By Rachael Singh

hmv-oxford-street

DELOITTE ADMINISTRATORS have announced that they have identified a further 37 store closures at collapsed music retailer HMV.

Nick Edwards, Rob Harding and Neville Kahn, Deloitte partners, were appointed joint administrators to HMV Group, HMV Music, HMV and Fopp Entertainments on 15 January.

The administrators said that 37 stores, which employ 464 staff, will close. No fixed date has yet been set for the closure of these stores which will continue to trade for now. However, the closure is expected to take place over the next two months to coincide with the 66 store closures announced earlier this month.

At the time of its collapse HMV operated about 236 stores and employed about 6,611 staff. Following the recent announcements since the collapse of the store there are just 116 stores remaining.

Edwards said: "As part of our ongoing review of HMV's financial position, we have undertaken a further review of the store portfolio and have identified an additional 37 stores for closure.

"This step has been taken in order to enhance the prospects of the restructured business continuing as a going concern. Together with the previously identified 66 closures, this restructuring will result in a residual portfolio of some 116 stores."

Earlier this month the administrators announced they had sold HMV's majority shareholding in entertainment venue G-A-Y, which includes bars and the Heaven nighclub, to its founder Jeremy Joseph.

The administrators announced on 31 January that it would make 186 redundancies in the retailer's head office and distribution centre.

Investment group Hilco bought HMV's secured debt on 23 January, reportedly from Lloyds and the Royal Bank of Scotland.

Stores included in the latest round of closures include: Heathrow Terminals, 1, 3, 4, Basildon, Torquay and East Kilbride.

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