The 90-year-old retailer looks ready to collapse.
The Guardian reports that HMV’s board has called in Deloitte as administrators, following weak sales over the Christmas period. 4,500 jobs across its 247 stores are now at risk.
HMV has been struggling with debts for just over two years, but was spared by its suppliers, including Universal Music, EMI, Warner Brothers and Disney, who improved commercial terms in exchange for shares of the company. However, those firms have apparently refused to provide additional financing to the retailer, leaving it with few options to find additional resources.
HMV opened its first store in 1921 on London’s Oxford Street and still owns the world’s biggest record shop there. While it had been shift out of films and music and into accessories such as headphones, it had not done enough to counter the declining sales.
The company’s website is still advertising a 25% off sale. Despite its recent financial difficulties, HMV still sells 27% of all DVDs and Blu-Ray discs and 38% of the physical music market.