Administrator holds out hope for HMV

Administrator holds out hope for HMV

HMV administrator Deloitte has said there have been "very positive" expressions of interest in buying the ailing retailer following the news of its move into administration yesterday (15th January).

Deloitte told Sky News that a few parties had contacted it following news of its administration.

Publishers yesterday said they were saddened by the prospect of losing a further high street retailer to trade with.

Last year, HMV increased book sales by 16% year-on-year.

Nick Edwards, joint administrator and restructuring services partner at Deloitte, said he was "working closely" with management and staff to stabilise the business and appreciated "co-operation and support" from suppliers.

He said: "HMV is an iconic retailer and continues to be a very popular brand, but as we have seen with many high street retailers, the market is changing rapidly and conditions are currently very tough. Following our appointment, we are working closely with management and staff to stabilise the business in order to continue trading whilst actively seeking a purchaser for the business and assets. We appreciate the cooperation and
support from the staff, customers, suppliers and landlords at what is clearly a difficult time."

He confirmed the retailer has 223 stores and 4,123 employees.

Yesterday, HMV c.e.o. Trevor Moore said he was "absolutely confident" about the future of HMV. Some analysts have begun to suggest the brand could trade from a reduced number of robustly-performing stores.

Retail analyst Nick Bubb said suppliers seem to have been more willing that commentators realised to help the group. He said: "This provides hope that the suppliers will be very keen to see a downsized HMV store chain emerge from the ashes of administration, even though the banks weren't happy that HMV couldn't achieve adequate cover for the £20m a year current interest charge bill. The main cause of the  disappointing overall -10% like-for-like sales at Christmas was actually the much-vaunted area of Technology. HMV's main markets were tough, but market share was improved in DVD's and video games and was held in music, despite the competition from Amazon and the supermarkets."

Publishers such as executive director of Simon & Schuster Kerr MacRae have voiced their support for HMV to continue to trade in some form.