HMV To Shed 400 Staff: Reports

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)

Retail restructuring specialist Hilco is reportedly close to cutting 400 jobs from HMV.

Hilco bought HMV out of administration earlier this month. The rescue package, reportedly worth £50 million, initially saved 141 stores and more than 2,500 jobs at the iconic British music and entertainment retail chain.

The Times of London writes of a memo to staff which lists several store positions identified for elimination at HMV. The memo apparently outlines three roles that could be wiped from most of its 141 remaining HMV-branded outlets – more than 400 staff in total – which could shed £7.8 million ($12 million) from its annual payroll. Security guards, cashiers  and supervisors are in the firing line, according to the report.

A spokesman for Hilco declined to comment.

Hilco will need to take tough measures to turn-around the troubled entertainment company. The ongoing decline of CD and DVD sales dragged the 92-year-old retailer into heavy losses, and the company was saddled with some £220 million ($337 million) in bank debt. When HMV went into administration in January – similar to a U.S. company filing for Chapter 11 bankruptcy protection – the group had 4,350 staff on the books and more than 200 stores.

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