HMV to Close 66 Stores

The  HMV music and video shop in Piccadilly on January 15, 2013 in London, England after management announced that administrators have been called in which may put more than 4,000 employees  at risk of losing their job.

(Photo by Peter Macdiarmid/Getty Images)

The first wave of HMV store closures has been announced with 66 brick and mortar outlets across the United Kingdom due to cease trading at an unspecified date over the next two months, administrators Deloitte have confirmed.

Loss-making HMV stores in Manchester, Glasgow, Edinburgh, Birmingham and Belfast, as well as several London outlets (Bayswater, Moorgate, Trocadero, Wandsworth, Wood Green), are among those earmarked for closure. 930 jobs will be lost as a result, confirmed Deloitte LLP, who were appointed administrators of HMV Jan. 15. No fixed date has been announced for any of the store closures with all 66 outlets to continue trading in the interim period. Deloitte says that it expects all store closures to take place within a two-month period.    

“As part of our ongoing review of HMV’s financial position, we have now completed a review of the store portfolio and have identified 66 loss making stores for closure,” said Nick Edwards, joint administrator, in a statement.

He continued: “This step has been taken in order to enhance the prospects of securing the business’ future as a going concern. We continue to receive strong support from staff and are extremely grateful to them for their commitment during an understandably difficult period.  All other key stakeholders remain very supportive and I continue to be hopeful of securing a future for the restructured business.”

It is not yet clear if further closures will be announced. Last week, Deloitte confirmed that 190 redundancies had been made across HMV's head office and distribution network. On Jan. 16, all 16 of HMV Ireland’s retail shuttered, leading to temporary staff sit-in protests over owed wages. At present, HMV has 220 U.K. stores (including the 66 HMV outlets identified for closure).

It is understood that administrators Deloitte remain in talks with retail restructuring group Hilco U.K. about taking over the troubled retailer. As previously reported, Hilco U.K. acquired HMV's debt Jan. 22 (effectively gaining control of the company) for a reported sum of £40 million ($63 million).

The full list of HMV stores closures is as follows:

Ashton-under-Lyne, Ballymena, Barnsley, Bayswater, Belfast Boucher Road, Belfast Forestside, Bexleyheath, Birkenhead, Birmingham Fort, Blackburn, Boston, Bournemouth Castlepoint, Bracknell, Burton-upon-Trent, Camberley, Chesterfield, Coleraine, Craigavon, Croydon Centrale, Derry, Dumfries, Durham, Edinburgh Fort, Edinburgh Gyle Centre, Edinburgh Ocean, Edinburgh Princes Street, Edinburgh St James, Falkirk, Fulham, Glasgow – Fort, Glasgow – Silverburn, Glasgow Braehead, Huddersfield, Kirkcaldy, Leamington Spa, Leeds White Rose, Lisburn, Loughborough, Luton, Manchester 90, Moorgate, Newry, Newtonabbey, Orpington, Rochdale, Scunthorpe, South Shields, Speke Park, St Albans, St Helens, Stockton-on-Tees, Tamworth, Teesside, Telford, Trocadero, Wakefield, Walsall, Walton-on-Thames, Wandsworth, Warrington, Watford, Wellingborough, Wigan, Wood Green, Workington, Wrexham.

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