HMV Going into Admin

[AlexJRiley]

So HMV has been set to go into admin for over a month announcing problems for the month long sale through december. Source: http://www.bbc.co.uk/news/business-21021073
(http://www.bbc.co.uk/news/business-21021073)
So my local HMV have set a sale for nearly everything at 25% off so its safe to say that they're going into admin very soon.

[peteyt]

I hope they are saved. As much as I love online shopping to me it still can't beat being able to go into a store, look at what you want, buy it and go home with it on the same day.

[RyRy]

Another one bites the dust. They'll get saved but have very few stores open, and will shift more focus onto their online department.

[Plebings]

i'm a bit worried on the effect it'll have on physicals in general. sad that play.com has also gone under.

[RyRy]

i'm a bit worried on the effect it'll have on physicals in general. sad that play.com has also gone under.

It hasn't gone under in the same manner HMV is going though. They just wouldn't have sustained a profit going forward in their current business model so they had to adapt!

[peteyt]

i'm a bit worried on the effect it'll have on physicals in general. sad that play.com has also gone under.

Didn't hear about that just had to look it up. It's annoying as one of the things I liked about play.com was that a lot of the cheap deals where actually from play.com themselves. I have nothing wrong with buying from other users and have done before, but it's nice to get them from the site itself sometimes.

[FlyingJesus]

Long overdue tbh, thought this would have happened years ago. If you fail to update (especially in the electronics market) you're gonna go down. Should have taken the hint from Blockbuster

[Plebings]

It hasn't gone under in the same manner HMV is going though. They just wouldn't have sustained a profit going forward in their current business model so they had to adapt!

yeah, mistake on my part!

---------- Post added 15-01-2013 at 12:39 AM ----------


Didn't hear about that just had to look it up. It's annoying as one of the things I liked about play.com was that a lot of the cheap deals where actually from play.com themselves. I have nothing wrong with buying from other users and have done before, but it's nice to get them from the site itself sometimes.

yeah i'm rather sad about play.com as well, they had some rather nice exclusives, though with them only being a marketplace i thought they'd (the exclusives) be picked up by hmv, le sigh.

---------- Post added 15-01-2013 at 12:41 AM ----------

the usual then.

http://www.wrexham.com/wp-content/uploads/2013/01/hmv-letter-500x375.jpg

[GommeInc]

Ever since they sold off Waterstones it was becoming increasingly likely that HMV would go. A shame as it's an ancient company and I believe the CEO or someone at the top of the organisation is related to the founder.

[HC]

God... we're gonna have nothing but clothes shops at this rate... ahhh...

[lawrawrrr]

they've gone into administration before and still pulled through, it's unlikely they will again this time but they do almost have the monopoly on the high street so it is possible. Would be a shame but it really shows how online shopping is growing...

[Samantha]

Wow, haven't really been in a HMV store in a while, I usually just buy online so it does show how online shopping is expanding. I do hope they pull through though.

[Mikey]

Poor HMV. It's like the only shop where you can buy DVDs and CDS except from supermarkets in Glasgow and obviously online. If it shuts then i'll be sad cause it means I can't actually look at stuff infront of me and I hate shopping stuff like that in supermarkets. -cri :(

[Plebings]

Poor HMV. It's like the only shop where you can buy DVDs and CDS except from supermarkets in Glasgow and obviously online. If it shuts then i'll be sad cause it means I can't actually look at stuff infront of me and I hate shopping stuff like that in supermarkets. -cri :(

i'm sure there will be something to replace it if they do go, even if it's just independent record stores.

[Alkaz]

Bought my Nexus7 from there 6 months ago. Glad I didn't opt for their £150 12 month insurance plan for it 8-). Never bought anything else from there but I do like to have a wonder round so will be a shame to see it go.

[GoldenMerc]

This is a huge shame, Another big company that was around my childhood leaving

[Inseriousity.]

Bolt660; this is all your fault. if youd just bought that dvd ;)

HMV have been in trouble for a long time, surprised they've managed to cling on for so long!

[Wig44.]

They should have copied Game's plan. Shutting down most branches, expanding their online business and buying in a wider range of stock. Shops are a thing of the past. People still go to things like clothes shops because you benefit from seeing clothing in real life and trying it on, but in the future this won't be necessary and I'd expect entire business districts to go dark...

Well, at least we'll have space for housing projects spawned by rampant population growth.

What I don't understand is why these businesses refuse to adapt.

[Jorders]

This has been a long time coming to be honest. I went to HMV in Liverpool during the Christmas holidays and their selection of games was dreadful. They had none of the new releases so their monthly top 10 games was made up from games like Fifa 12 and Battlefield Bad Company 2 etc.

[Cerys]

Is all this stuff happening because HMV etc is simply rubbish? Or is it because people are downloading their music online so they dont have as much service?
Anyway, sad to see it dying.

[Kardan]

Is all this stuff happening because HMV etc is simply rubbish? Or is it because people are downloading their music online so they dont have as much service?
Anyway, sad to see it dying.

A mixture of both I presume. It doesn't help that their stuff is way, way expensive. Why would you shop somewhere when you can get it cheaper somewhere else?

[Jorders]

People seem to be blaming it on cheaper online alternatives. But also shops like ASDA and Tesco being cheaper. Its all going to become part of this 'Britain is losing its high street' argument. But if the high streets can't compete then thats just like evolution weeding out something that isn't needed anymore. Besides, the high street where I live is **** anyway, the only time I have ever really wanted to go to town was when I was about 14 and it was Saturday. If I ever actually want to go to proper shops its always been a case of gettin the train to one of the nearby city centres or driving to somewhere like the Trafford Centre...

[Chippiewill]

What I don't understand is why these businesses refuse to adapt.

There's no point, high street retailing is their niche. Online, Amazon will beat them 9 times out of 10 on price and profit margin.

HMV should have gone down years ago to be honest, it's only through the loss of Virgin Megastores that they've staved it off this long. As always it'll be the super markets like tescos and asda that benefit from this.

[Aiden]

Its all about iTunes though... :/ Never brought anything from HMV anyway.

[SackRace]

Received 2 HMV £10 gift-cards at Christmas. Went in today and they didn't accept them, was pretty annoyed.

[Jorders]

I heard that HMV did try some sort of online distribution service and it failed massively.

Just looking into HMV on wiki and apparently it stands for 'His Masters Voice' which is kinda odd sounding to be honest. Always thought it meant Hifi Music and Video or something like that...

[Plebings]

They should have copied Game's plan. Shutting down most branches, expanding their online business and buying in a wider range of stock. Shops are a thing of the past. People still go to things like clothes shops because you benefit from seeing clothing in real life and trying it on, but in the future this won't be necessary and I'd expect entire business districts to go dark...

Well, at least we'll have space for housing projects spawned by rampant population growth.

What I don't understand is why these businesses refuse to adapt.

sounds like they will be shutting half their branches, went into fopp as well who is owned by hmv, they sound rather positive that even if hmv goes down, fopp will likely be bought by another company as they actually make a profit apparently, though i'm cynical as half their stock comes from hmv, and will labels still put up with having to majorly cut down prices for them, will labels have to increase the cost due to lack of demand for physical anyway?

[dbgtz]

Hopefully it doesn't go under, there's bugger all else around which actually sells a good range of dvds and I don't want to rely on the internet.

[zombies]

don't think i've ever shopped in HMV.

[Nige]

I'm pretty sure someone will buy out HMV.
Although new online shopping websites such as Amazon are most likely taking away their business.

[peteyt]

Its all about iTunes though... :/ Never brought anything from HMV anyway.

Not really some people like myself prefer to buy physical copies of products so iTunes isn't for us.

[Aiden]

Not really some people like myself prefer to buy physical copies of products so iTunes isn't for us.

some though :)

[GommeInc]

What I don't understand is why these businesses refuse to adapt.
Rent, cost of stock (affecting cost to the customer), transport costs, international businesses (Amazon), huge all-purpose retailers (Tesco, Sainsbury's), they're an inconvenience... I could go on but that's the general gift of why bricks and mortar shopping is now becoming a thing of the past (I studied retail and contemporary issues a while back) :P

Consumers are to blame because they lack an interest in walking to a store because they're immensely lazy and not wanting to pay the extra few pounds, while businesses are to blame for not reducing rent, giving a good deal to the customer and being lack luster in their approach. Rent is another issue too, they do not necessarily own the buildings and the owners charge horrendous amounts though that is partially down to them upping the price back in the 90s when high street stores were doing well and when online retailers came in landlords didn't think to lower the rent to help make them compete.

[peteyt]

Looks like they are no longer allowing people to use their gift cards which is always bad

[xxMATTGxx]

Looks like they are no longer allowing people to use their gift cards which is always bad

Doesn't that always happen when a shop goes into admin? Pretty sure they did that with GAME.

[Kieran]

If you bought the cards at Tesco you can use them there and also if they were bought by credit card you're covered anyway.

[Chippiewill]

If you bought the cards at Tesco you can use them there and also if they were bought by credit card you're covered anyway.
ASDA too, good on them.

[wixard]

don't know about the UK but the HMV staff of ireland are not getting their holiday/overtime/REGULAR pay for the past couple weeks, so a few of the stores that still can are sitting in

https://www.facebook.com/StaffHMVIreland

[Martin]

Such a shame really, I thought it was quite a handy shop really. Had to remove all the gift cards from work yesterday. Personally I didnt see this coming, it always seems really busy when I go in there, but I guess its more browsers than actual sales, since more and more are downloading online and stuff I guess

[Chippiewill]

Not so much downloadin (Except for music but HMV sells a lot more), that's still not prevalent enough. It's more Amazon that's taking business.

[xxMATTGxx]

Not so much downloadin (Except for music but HMV sells a lot more), that's still not prevalent enough. It's more Amazon that's taking business.

Shame Amazon doesn't pay tax! Oh snap, I went there. Although I still use Amazon regardless :P

[GommeInc]

I'm amazed there are rumours Game Group Plc want to buy some of the HMV stores... Perhaps if the sales do go through we can expect Game to re-enter administration and be gone by the end of the year (if not early 2014) too :P

[-:Undertaker:-]

Another case of a retailer and shop that probably had a future in some shape or form but has gone down the pipes because of the ridiculous business rates the local councils charge shops, along with the amounts of tax that employers have to pay (National Insurance etc) and add on to that the fact that businesses now have to abide by ridiculous regulations such as minimum wage when their employee's (usually our age) aren't in many cases worth paying over £4.50 odd an hour - thats why youth unemployment is running so high and many retailers attempt to hire older workers who are worth that amount an hour.

But if you vote for higher taxes and the likes of the minimum wage then that's what you'll end up with in the end, no job.

[AlexJRiley]

If the Raktuken Group or Amazon played this smart, they could get a lot of estate quite cheaply as well as a lot of stock on the cheap and open up some stores for Play.com or Amazon. I know amazon now do a service where you can have packages delivered to lockers in a lot of locations (My closest being the Lakeside shopping centre) I think it costs a little bit extra but its far more convenient if you know you wont be home. So Amazon could easily open up a store that they can sell straight out of as well as have lockers in. And the Raktuken Group who's stock variety is so large could easily open up shops and make a killing because they're so cheap and would compete with many supermarkets and the internet for pure convenience of their cost and just picking it up at the same cost as online minus the 3-5 delivery wait.

[xxMATTGxx]

Bit of an update:


Restructuring specialist Hilco takes control of retailer

Restructuring specialist Hilco has taken effective control of music and DVD retailer HMV.

Hilco, which already owns HMV Canada, has bought the debt of HMV from the group's lenders, Lloyds and Royal Bank of Scotland.

The debt deal gives Hilco effective control of HMV which fell into administration last week.

HMV has been hit by competition from online rivals, supermarkets, and illegal music and film downloads.

An industry group of music labels and film studios were reported on Monday to favour a buyout of HMV by Hilco.

http://www.bbc.co.uk/news/business-21141209#TWEET542800

[-:Undertaker:-]

Bit of an update:

http://www.bbc.co.uk/news/business-21141209#TWEET542800

That's good news in that they're restructuring rather than dissolving it's assets, similar to the JJB acquisition by Sports Direct.