Update: HMV have now confirmed earlier speculation that it is to appoint Deloitte as an administrator. The company is to suspend the trading of its shares on the London Stock Exchange.
HMV explained that it is the intention of the administrators “to continue to trade whilst they seek a purchaser for the business”.
Leading high-street retailer HMV is set to call in administrators following a refusal for more credit, casting serious doubt over the stores future.
The entertainment chain, which specialises in the sale of CD’s, DVD’s and games, has been part of the British high-street for decades and is comprised of over 230 UK locations, employing some 4,000 people.
Last week HMV begun promoting a Blue Cross Sale, offering consumers 25% off selected products. However, the retailer insisted that this move was not anything out of the ordinary, and in no way linked to the firms financial struggles. Whilst this Blue Cross Sale was getting under-way the HMV group was busy asking its suppliers for a reported £300 million in further financing. The requested cash would have gone towards refreshing the company’s business model, along with paying off bank debts. The request for additional funds was rejected.
HMV chief executive Trevor Moore has been in the top job since September of last year. Prior to being appointed at HMV Moore ran photography retailer Jessops, which closed all of its 187 UK stores last week.