HMV announces further store closures; job losses rise to 1,500

More unhappy news regarding troubled retailer HMV.

The company have already called time on 66 stores across the UK, plus all HMV branches in the Republic Of Ireland. As The Guardian report, HMV will now close a further 37 stores, including the last remaining outlet in Glasgow and all of the Heathrow airport shops. 464 jobs have been axed in the process, taking the total job toll to around 1,500.

Deloitte’s Nick Edwards explained the move:

“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. 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.”

Last month, HMV called in Deloitte after years of declining profits and rising debts. Restructuring organisation Hilco UK subsequently bought the company’s £176m debt. As reported yesterday, Elton John has offered his support to the company. The singer has plans to recruit a host of megastars to play in-store shows in aid of HMV, and will lead the charge with an “intimate” show later in the year.



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