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ERA comments on HMV administration

By | Published on Friday 28 December 2018

Entertainment Retailers Association

The Entertainment Retailers Association has commented on this morning’s news that HMV UK is heading back into administration after a tough fourth quarter for the entertainment retail chain.

The CEO of ERA, Kim Bayley, told reporters: “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”, she went on, “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 £2 billion a year so there is plenty of business there”.

“For the sake of HMV’s staff, customers and suppliers”, Bayley concluded, “we are very much hoping HMV can turn things around again”.

The boss of Hilco, which bought HMV after the company first fell into administration back in 2013, confirmed this morning that another slump in DVD sales and persistently high business rates were both key factors behind today’s developments. It’s thought that last minute rescue talks with the firm’s suppliers, especially in the music industry, failed to find a solution.

KMPG will manage the administration process. More than 120 stores could close and 2200 jobs be lost if a buyer can’t be found.