Fears have been expressed for staff at HMV in Worthing, as the chain becomes the second national company in a week to enter administration.
The company today (Tuesday, January 15). appointed Deloitte to decide whether there was any hope of saving the 90 year-old business, which has come under severe pressure from online sales.
Latest statistics have revealed that 75 per cent of the music market is now online, with observers reporting HMV had been slow to evolve its internet operations.
Concerns have emerged over a decision to cease acceptance of gift vouchers, which had been a particularly popular element of the business in the run up to Christmas.
With 239 stores in the UK and more than 100 overseas, its plight comes just days after Jessops folded when administrators were called in last Wednesday.
The firm had attempted to diversify with offering a broad of electrical goods including IPODs and computer games, which had shown some signs of improving its fortunes.
Tina Tilley, of Worthing and Adur Chamber of Commerce believed the situation was troubling for the prospects this year for the high street.
In a statement, HMV said: “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 and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect.”
For full story see this week’s Herald, January, 17.
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