UK retailer HMV enters administration

Gift vouchers no longer accepted, but the troubled high-street retailer will keep all 239 stores open while it attempts to find a buyer.

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One of the last main high-street entertainment retailers in the UK, HMV, has confirmed it will be entering administration today.

Gift vouchers will no longer be accepted, reports the BBC, which will likely be upsetting news for many so soon after Christmas. HMV will also stop selling gift vouchers as of today.

We're currently checking with HMV as to whether any preorders placed with the company will still be honoured.

In the short term, all 239 stores will remain open while administrator Deloitte seeks to find a new buyer for the beleaguered chain. The jobs of the company's 4,350 employees are also at risk.

The company, which was founded in 1921, has suspended trading on the London Stock Exchange.

HMV warned in December 2012 that it was suffering and that it might possibly breach a series of loan arrangements with banks. Last week the company announced a month-long 25 percent off sale, but it was not enough to buoy the retailer's fortunes. "The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection," explained HMV in a statement.

In recent weeks, entertainment chain Comet has also exited the high street, and last year GAME entered administration but was saved at the last minute by the OpCapita group, though at a cost of over 250 stores and 40 percent of its staff.

Discussion

74 comments
NoDzombie
NoDzombie

as much as i hate to seem them go because they were a huge part of my shopping life 10 years ago when i was a teenager, in recent years they have been terrible, prices are high and they never seem to have anything you actually want in stock


still a shame though, and it looks like we will be loosing Play.com to very soon which will mean that basically Amazon is the only option whether we like it or not, which is sad really

Wula_
Wula_

hate to say. But HMV where I live (BC canada) friggin sucks and hopefully goes under in name of a better store. They have  a crrappy selection and what they do have for sale is at the same price if not HIGHER then stores that are RIGHT BESIDE IT. So when friends were like "lets check out HMV" I would ask "why you can get almost the same product at this store for $5+ cheaper >.>

Quezakolt
Quezakolt

Speaking for canada's hmv, i stopped going there when they stopped stocking singles, imports, rares & remixes albums like they used to.

kangsta1111
kangsta1111

Oh no, now where am i supposed to pay £50 for a console game, £45 for a single console controller, £15 for a album with 2-3 good songs on there, £4-6 for a paper poster, £22 for a blu-ray film and £15 for a HDMI wire. 

Goemons
Goemons

Been on the cards for over 2 years.

thenephariouson
thenephariouson

We really are in the midst of the 'Digital Distribution' transition, although its simply Evolution, it still guts me when i see Companies such as HMV, Woolworths, Currys and Jessops close down, these are shops that i grew up seeing in my local town centre, and although i didnt neccessarily shop in them, they have always been a part of my life on a subliminal level.

Its a shame, but is also the future which we must simply embrace and accept.

I mainly feel sorry for the thousands of staff that are now in limbo.

DownTheFarm
DownTheFarm

I just finished a temping job for them over xmas. I'm just hoping they pay me the money they owe me on friday.

To be honest I felt like telling customers not to buy gift cards or pre-order GTA V because everyone in that place knew what was coming. The staff room had a list of missed targets going back 2 months. Missed targets by 20 thousand pounds a day that is.

kkee
kkee

Shame we could be losing both Play.com and HMV in the same week.

mattcake
mattcake

Oh, and I also think it's f**king disgusting that gift vouchers aren't honoured (especially after xmas). The money has been given to you for _nothing_, we are ENTITLED to goods in your store of the equivalent value, otherwise you're just effectively stealing. Is it only in the UK we have to put up with this kinda crap? Unbelievable.

mattcake
mattcake

Well, lesson learnt. I don't think I've bought a game from an actual bricks and mortar store for 10yrs+, the only reason I got Far Cry 3 from there last month was cos I was in a rush and the 5 quid discount voucher eased the pain of the inflated price. Now that's invalid, great.

Also worth mentioning in the whole of Worcester, they're the only store to sell recent Bluray, and still didn't have Walking Dead S2 when I wanted it. It's sad in a way, but online is the way to go for nearly everything now.

ZeW0lf
ZeW0lf

Inevitable. Their prices are a joke.

thenephariouson
thenephariouson

Although i completely agree that this is a real shame, i feel that if HMV had adopted the 'Digital Distribution Model' much earlier that they would'nt be in this predicament now.

Next Up: Video Game retailers

uchihasilver
uchihasilver

also gotta say im getting a bit annoyed with retailers now they all seem to be applying for administration fair enough there in trouble but SERIOUSLY tell people for god sake its not difficult i hear so much about people buying hundreds of pounds (£) of gift vouchers like less than 24 hours before hand and they cant get them back not trying to be funny but should this not be classed as theft since they intend to do this surely they should say something a couple of weeks before to let people avoid having useless gift cards which could have loads of money on =/ the same happened with game a i traded loads of stuff in we are talking like £150+ and when i heard like a few days later a felt as though someone had just robbed me it isn't nice, yes people always turn round and complain saying we should think about the people losing their jobs and all i can say is NO i consider myself first that's the way it is, people don't say this when the likes of james cameron make something stupid like 2 billion on a film no one turns to him and rages saying he should help the poor because people don't like to think about it unless its plastered in front of them -_-    

uchihasilver
uchihasilver

not surprising though store like this are overpriced to hell =/

Jake518
Jake518

Man, I feel sorry for those whose gift vouchers will not be accepted.

Hillsy_
Hillsy_

I agree, real shame.  They had such a variety of movies available unlike your local supermarket which just stocked mainstream rubbish.  I'll always check HMV's World Cinema section, music section etc..Hope for the best for them.  Online seems to be the way forward for most things.

OrdosAlpha
OrdosAlpha

Real shame. I agree that their pricing wasn't competitive, and even I stopped going into my local store because I switched to finding better deals online. Although, I did still purchase off their website every now and again. Even got two Blu-Rays pre-ordered on their site.

The-Neon-Seal
The-Neon-Seal

Agent Smith (aka: The Internet) to Neo (aka: Le Highstreet): "You hear that Mr. Anderson? Thats the sound of inevitability."

Shame really. I liked HMV. Problem was, it was just too expensive compared to the internet. Most current shops are. I went in to game the other week and took an interest in Valkryia Chronicles. It was pre-owned and reduced from £16+ to £12.99 in the new year sale. Took it to the counter but for some reason they had no disks in stock. In the end I ordered it of amazon, new, for £12 with a £2 something delivery fee. So thats a brandnew game for less than pre-owned IN a sale, and the delivery price is less than bus fair!

Zanoh
Zanoh

Shame. I always loved hmv. It's where I got most of my BBC movies from.

BelaidKL
BelaidKL

Farewell old school entertainment retailers... And as an unfortunate result.. Welcome online world of tomorrow 

MightyEzekiel
MightyEzekiel

Sorry to hear that =/.. i wouldn't even buy from them because they dont use paypal.. :X

Are there any other shops online besides Zavvi and ShopTo that uses paypal to buy from? (from uk ofcourse) thx :)

Sanguis_Malus
Sanguis_Malus

Its sad to see another British high street retailer go, my thoughts are with the normal staff. Times have changed, HMV were creaming It for years but overpricing has caught up with them. The way Its going only CrapDonalds & StarF***s will be left on the high street. Property Is overpriced & the Government only care about taxing us Into oblivion.

St0Ne4Ge
St0Ne4Ge

Meh they can't really complain, everything in that shop is way overpriced, so no surprise nobody goes there. I never even consider them when I'm looking for games and DVD's, not counting internet places there are still much cheaper shops to go right next door.

CaesarIIII
CaesarIIII

I just find out to day. I have a 10£ Gift voucher from a friend as a Xmas present, and i was saving it for an another day ;( 

This sounds so deliberate to go into administration so quick after Xmas... all that Gift vouchers will cover allot of administration cost....F**ing &*"%$£E&"^%$E*& !!!! 

AcingGamesTEW
AcingGamesTEW

Damn i just bought 3 games yesterday morning with a gift card aswell. Damn lucky :)

madjack1812
madjack1812

Saw this coming a mile off.  Deliberately didn't buy gift vouchers there this xmas for that very reason!

jayjay444
jayjay444

I'll be honest Ii won't miss it, it will be sad for all these people to lose there jobs though I hope a buyer is found but I doubt they will. 


Next year when the PS4 and new xbox comes out and they restrict used games, I expect alot  of retailers to go under and they wont recover. Thanks Sony and Microsoft for the heads up, I wont be buying any of your consoles so u can charge for over priced games and wont be able to trade them in towards a new game u both can go to hell PC gamimg here i come. 

obsequies
obsequies

the only thing worth buying in physical form anymore are games and even those are dying down..buying a cd to put onto an ipod is insane..they should have gotten rid of 9/10ths of their stores as soon as signs surfaced that the internet was in

warhawk-geeby
warhawk-geeby

I've been to HMV twice recently, once Christmas shopping and then again in the January sales.  Doesn't surprise me at all that the place is going under though.  Far too expensive compared to buying things off the net, and the choice actually in the store just seems random as hell.. There's barely any logic to the stock they have in.

I'll be sad to see it go (if a buyer isn't found), but at the same time they should have adapted more to the market, it was out of touch.

How GAME continues to operate is beyond me as well.  That place is outrageously over-priced! 

Yulaw2000
Yulaw2000

HMV are a bit pricey but at least they maintain a variate of stock, rather than just the latest stuff.

Rattlesnake_8
Rattlesnake_8

@thenephariouson  Wait what? Woolworth shut down?? I moved to the US a few years back and haven't heard that.. dam things are going to be so different when I go back for a visit.

Goemons
Goemons

@DownTheFarm"To be honest I felt like telling customers not to buy gift cards or pre-order"

So why didint you

tom_cat_01
tom_cat_01

@mattcake I think the problem is, that once HMV (or any company) goes into administration, then the stock doesn't belong to them anymore - it belongs to their creditors, whom have probably sent the stock to the stores, but haven't been paid for it.  Cancelling of vouchers is to protect the stock/interests of the suppliers, who haven't been paid for their stock...

Falzonn
Falzonn

@mattcake Not entirely.  HMV also exists in Canada, so I assume that the gift voucher thing applies here as well.

  I'll admit I only ever walked into HMV once a year or so though.  I've never bought any video games from them, but they have an okay selection of music music & movies.  I'll be sad to see them go.  Hopefully they can get this business sorted out.  Even if I don't visit them often, competition is good for consumers.

thenephariouson
thenephariouson

@mattcake 

They cant honestly expect us to believe that they werent aware that a file for Administration was not inevitable, they will have known about this for a long time, and therefore should have ceased the sale of Gift Vouchers at an early point in the process knowing that this was going to happen.

The-Neon-Seal
The-Neon-Seal

@jayjay444 I seriously doubt they'll impliment it. If they do they've lost my purchases. I'll spend my money on a decent gaming laptop instead.

Shingetsu
Shingetsu

@jayjay444 

Wont be able to trade them, or lend them to a friend, or even give it to a charity. I gave two 360 games to a charity shop the other day as the trade in price was only £1 for each game. De Blob 2 and Rainbow 6 Vegas 2.

Go on XBL Market Place and look up Mortal Kombat. Look at the price... £45!! £45 for a mediocre game that came out ages ago. When you can get it on Amazon for £15, and get the disc, the box, the manual, and peace of mind knowing that you can return it if you don't like it, or any of the for-mentioned. I'm all for buying online from the likes of Play, Amazon etc. But anyone who buys digitally is either so stupid they don't know what day of the week it is, or someone who has more money than sense.

Only exception is for Arcade games and DLC. 

So long as we can still buy a hard copy, all is good. But what is Sony and MS ban those too..... then we will be forced to spend £45 on old, so-so games.

u1tradt
u1tradt

@obsequies They most probably will now because they have no other choice. Cutting thousands of jobs is no joke so you can't be seen to be stripping thousands of their livelihood on the basis of precaution. Whoever buys them are sure to keep the few profitable chains and focus on increasing their internet profile. That's pretty much the only future HMV has in their current form.

mattcake
mattcake

@Falzonn I'll be sad to see them go, I always assumed there were enough people who didn't buy things online to keep the high street in business, but then as even my 60yr old parents shop online nowadays, I guess it was inevitable.

mattcake
mattcake

@thenephariouson Agree 100%. As with their "25% off" sale which only applied to certain items. Just a last ditch effort to make some cash before disappearing. Not cool :(

Deathcult87
Deathcult87

@Shingetsu I have had no probs buying digital games but that is through Steam and GOG. I agree that the prices on XBLA and PSN for digital games is a complete joke.

The-Neon-Seal
The-Neon-Seal

@u1tradt @obsequies I hope whoever buys them has some nouse about how properly price stuff too, unlike whoever used to run it and most people in the games industry :p

DownTheFarm
DownTheFarm

@Rattlesnake_8 @DownTheFarm @Goemons  Me getting the sack for badmouthing my employer wouldn't have paid my taxes or put food on the table. Maybe you will understand when you grow up and move out of your parents' basement

Rattlesnake_8
Rattlesnake_8

@DownTheFarm @Goemons I hope you don't get paid.. knowingly taking peoples money for something they won't get back, and won't be able to get that money back either.. wow.