464 staff go as cull continues at HMV
Published 21/02/2013 | 09:36
Another 464 jobs face the axe at failed music chain HMV after administrators announced the closure of a further 37 stores in England and Scotland.
Deloitte said the stores would close over the next four-to-six weeks and would probably lead to all affected staff being made |redundant, although it would try to relocate employees to other stores where possible.
The blow will leave around 116 stores in the HMV chain, after Deloitte said 66 stores would close earlier this month, affecting |nearly 1,000 staff.
It said that of the 11 stores the company ran in Northern Ireland, only the Donegall Arcade branch would remain open.
The latest store closures come after 60 staff were let go by |Deloitte across HMV's head office network at Eastcastle Street in London, Marlow and Solihull nearly two weeks ago — including former HMV boss Trevor Moore.
Around 190 jobs had previously been cut by Deloitte in the chain's head offices and distribution centres.
Nick Edwards, joint administrator at Deloitte, said the decision to shut the stores was made to |“enhance the prospects of the |restructured business continuing”.
He added: “We are extremely grateful to the staff for their |continued strong support and commitment during an understandably difficult period.
“All other key stakeholders including suppliers and landlords remain supportive and we appreciate their ongoing assistance.”
HMV collapsed into administration last month, but Deloitte said last week that sale discussions were “progressing” as it also announced it had secured stock from most of its suppliers that will see it continue to sell the latest blockbusters and music releases.
Restructuring firm Hilco — the group behind HMV Canada — has already bought the company's debt in a move that has raised hopes of a rescue deal.
HMV had more than 220 stores and 4,120 staff when it hit the wall in January after failing to keep pace with internet rivals and supermarkets, whose scale has enabled them to offer CDs and DVDs at cheaper prices.