Music retailer HMV is on the brink of collapse for the second time in six years, putting more than 2,200 jobs at risk.
Britain’s biggest CD and DVD chain is poised to appoint administrators KPMG following an “extremely weak” Christmas trading period, reports say.
More than 2,200 jobs are at risk if the music giant, which has 130 stores across the country, collapses.
The chain first fell into administration in 2013 but restructuring firm Hilco bought the company’s debt and saved the chain.
Paul McGowan, Executive Chairman of the chain and its owner Hilco Capital, told ITV News: “During the key Christmas trading period the market for DVD fell by over 30 per cent compared to the previous year and, whilst HMV performed considerably better than that, such a deterioration in a key sector of the market is unsustainable.
“HMV has clearly not been insulated from the general malaise of the UK High Street and has suffered the same challenges with Business Rates and other government-centric policies which have led to increased fixed costs in the business.
“Business Rates alone represent an annual cost to HMV in excess of £15m.
“Even an exceptionally well-run and much-loved business such as HMV cannot withstand the tsunami of challenges facing UK retailers over the last 12 months on top of such a dramatic change in consumer behaviour in the entertainment market.”
Entertainment Retailers Association CEO Kim Bayley said, “After what has been widely reported as a tough fourth quarter for retailers, HMV is not the only High Street name facing tough decisions right now.
“It is a fast-moving situation and it is too early to say how it will end.
"What is clear is that following its first move into administration in 2013, HMV has enjoyed a remarkable turnaround and it is conceivable that this will happen again.
“The fact is the physical entertainment market is still worth up to £2bn a year so there is plenty of business there.
"For the sake of HMV’s staff, customers and suppliers, we are very much hoping HMV can turn things around again.”
