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Date: Monday 14th January, 2013
Written by Keith Tully
It was more bad news for the UK high street this morning as music, film and entertainment retailer HMV announced it was entering administration.
It hasn't come as a huge surprise to many; HMV have long been suffering with the boom of online spending and recently featured in our infographic on the Hardest Hit Retailers in 2012 - yet it still demonstrates that even the biggest stores in the country are under immense threat.
They've traded in the UK for 91 years but the days are now numbered meaning 4,350 jobs are at risk across 239 stores.
HMV shares are suspended on the London Stock Exchange and the company have announced that no gift vouchers will be accepted in-store or online.
HMV - which stands for His Master's Voice - are the latest of numerous household names to suffer High Street struggles, including the closure last week of camera retailer Jessops and the collapse of electrical goods chain Comet in November 2012.
In its 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."
Maureen Hinton, analyst from Verdict Research, said that HMV are paying the price for not adjusting to the online retail market sooner.
"If it had gone online 10, 15 years ago, it's got a very strong brand name, it could have built up a real presence. But at the moment if we think online you just think Amazon."
Neil Saunders, the managing director of retail analyst Conlumino, said music in tangible form was simply a dying industry and administration was merely a matter of time.
"The bottom line is that there is no real future for physical retail in the music sector," he said.
Nick Edwards, Neville Kahn and Rob Harding of Deloitte will be appointed as administrators. The company said: "The directors understand that it is the intention of the administrators, once appointed, to continue to trade while they seek a purchaser for the business."