More disheartening news regarding HMV’s decline and fall.
Last month, the British retailer called in administrators Deloitte after years of declining profits and rising debts. Restructuring organisation Hilco UK subsequently bought HMV’s £176m debt, stabilising a somewhat chaotic situation in the process. Still, despite extra assistance from suppliers and major labels, it looks like the inevitable store closures will begin in earnest this week.
As The Telegraph report, a source claims that Deloitte will initiate the “next stage of restructuring” by closing between 60 and 100 stores. The outlets in question will be kept open until they have run out of stock, and will then be shut down for good. The locations of the closures have yet to be decided, although Deloitte and Hilco have resolved to reduce the total of operational HMVs to between 120 and 160 stores.
The move is estimated to put up to 1,500 jobs at risk – almost 40% of the 4000 staff currently working for the company. One of the shop’s flagship central London stores is also expected to be among the casualties.
Last week, HMV employee Poppy Rose Cleere made headlines when she used the HMV Twitter account to livecast her own dismissal from the company. She subsequently explained her actions via a statement, claiming that she “wanted to show the power of Social Media to those who refused to be educated.”