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HMV suffers wipe-out in capital as administrator culls stores

Troubled HMV is to shut all five of its stores in Edinburgh

Troubled HMV is to shut all five of its stores in Edinburgh

MORE than half of Scotland’s 
remaining HMV stores will close within the next two months as part of a UK-wide cull that 
administrators hope will secure a rescue deal for the stricken music retailer.

Administrator Deloitte yesterday shut 66 loss-making sites across the UK leaving HMV with 154 stores. Of the 11 to close in Scotland, all five in Edinburgh shut down, as well as three in Glasgow and stores in Dumfries, Falkirk and Kirkcaldy.

Asked why no HMV shops would remain in the capital, a spokeswoman for Deloitte noted that all of the Edinburgh sites were trading at a loss.

She added that the Fopp chain – which itself was rescued from collapse by HMV in 2007 – would not suffer any closures. Fopp has eight shops in the UK, including one in Edinburgh’s Rose Street and two in Glasgow.

Some 930 people will be put out of work as a result of the closures, including 180 north of the Border. A further ten Scottish jobs were lost with last week’s closure of HMV in Perth, although that had been planned prior to HMV falling into administration.

Joint administrator Nick 
Edwards said the decision to close nearly a third of the stores would “enhance the prospects” of the remaining business, which will employ about 3,000 across the UK. That includes about 200 working at the ten remaining Scottish outlets.

“We continue to receive strong support from staff and are extremely grateful to them for their commitment during an understandably difficult 
period,” Edwards said. “All other key stakeholders remain very supportive and I continue to be hopeful of securing a future for the restructured business.”

HMV went into administration in early January after poor Christmas sales. Retail restructuring specialist Hilco subsequently took over HMV’s 
£176 million debt, giving it 
effective control of the business, but not outright ownership. Hilco, which bought out HMV Canada in 2011, is thought to have support from music labels such as Universal, Warner and Sony for any bid it might lodge for the UK operation.

 

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