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.