HMV to close 66 stores

HMV is to close 66 of its stores, making 930 of its staff redundant, as it puts its Oxford Street branch up for sale.

The company’s administrators Deloitte said the decision was made following a review of the stores portfolio.

According to the Guardian, tthe closures include HMV’s flagship Oxford Street branch and administrators will consider offers of £6m–£9m with a deadline of this Friday (8th February) to take on the lease of the building at 130 Oxford Street, London. Hilco, the restructuring specialist, is considering whether it can hold on to the site as part of its plan to run a downsized HMV.

The closures account for 30% of the company’s overall portfolio of 220 UK stores.

Nick Edwards, joint administrator, said: “As part of our ongoing review of HMV’s financial position, we have now completed a review of the store portfolio and have identified 66 loss making stores for closure.  This step has been taken in order to enhance the prospects of securing the business’ future as a going concern. We continue to receive strong support from staff and are extremely grateful to them for their commitment during an understandably difficult period. 

"All other key stakeholders remain very supportive and I continue to be hopeful of securing a future for the restructured business.”

No fixed date has been given for the store closures, although they are likely to take place in the next two months.