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HMV heading towards closure

Posted on Jan 16, 11:07AM | IANS

Popular music store chain HMV may soon close down, putting at risk jobs of over 4,000 people, The Sun reported Tuesday.

Restructuring firm Deloitte will look to trade 230 British stores of the 92-year-old chain and find a buyer. Around 4,350 jobs are at risk if the chain closes.

The first HMV store opened in London in 1921. The initials stand for His Master's Voice. A dog and a gramophone is its popular logo.

It first sold radio and TV sets but expanded its record shops in the late 1960s, becoming Britain's top music retailer by 1976 with 35 stores.

By its 75th anniversary in 1996, HMV had more than 300 stores worldwide.

But the rise of the internet and music downloads hit HMV hard, the daily said.

In 2012, digital downloads hit one billion pounds as CD and DVD sales plummeted.

The firm announced in a statement: "The board has been unable to reach a position where it feels able to continue to trade outside of insolvency protection."

Former HMV chief Simon Fox tried moving into live music and technology such as headphones, but new boss Trevor Moore admitted that HMV was in a fight for survival.

HMV has emailed to all its stores telling staff not to accept customers' gift cards or vouchers.

Insiders blamed HMV's bankers, Royal Bank of Scotland and Lloyds, for pulling the plug.

Shares in HMV, which traded at 274 pence in 2005, closed at just 1.10 pence Monday.