British music retailer HMV fights for survival

LONDON (AFP) ― Iconic British music retailer HMV was fighting for survival on Tuesday after slumping into administration, but its boss expressed hope the high-street giant would manage to secure its future.

HMV had announced Monday that it had appointed administrators Deloitte in an attempt to help it remain operational, placing about 4,350 jobs at risk after the company had struggled throughout the critical Christmas holiday period.

The group’s 239 outlets, including nine Fopp-branded branches, will remain open while Deloitte attempts to find a buyer for some or all of the business, although store closures are likely. Gift vouchers are no longer being accepted.

Britain’s economy is struggling in general meanwhile, with a triple-dip recession possibly on the horizon, contributing to the recent collapse of photography chain Jessops and electrical goods group Comet.

HMV chief executive Trevor Moore told journalists that he was “convinced” that the group had a place on the high street and said management were working with Deloitte in a bid to ensure its survival.

“We remain convinced that we can find a successful business outcome,” said Moore, who was previously boss of Jessops.

He added: “I am every bit as passionate about HMV as I was when I joined in September. I’d like to be involved in the business going forward if the opportunity presented itself.”

Industry experts argue that the 92-year-old institution has failed to meet the challenge of online retailing, digital downloading and fierce supermarket competition, and has been teetering on the brink for many months.

“HMV’s notice of administration was inevitable with online retailers, downloads and supermarkets combining to marginalise a brand which has become out-priced and out-dated, despite its strong heritage,” said Julie Palmer, partner at corporate recovery specialist Begbies Traynor.

The company ― the last major music and DVD specialist left on the British high street ― has suspended trading of its shares on the London Stock Exchange.