HMV is the latest casualty of the high street as it is set to go into administration following a refused request for funding.
According to the Financial Times, HMV requested £300m in funds from its suppliers which was refused. Last month, the same suppliers granted the 239 store chain £40m in backing despite its market value only being £14m.
Deloitte has been appointed as the company's administrator and shares in HMV will be suspended. Deloitte and HMV will be attempting to find a buyer for the business but at present, approximately 4,000 jobs are at risk.
'The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection, and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect,' reads a statement from the chain.
Speculation has been mounting that the store was in trouble following the announcement of a month-long 25% off sale, suggesting that it had not performed well over the Christmas period. Deloitte will be keeping the stores open whilst they seek a potential buyer.
HMV first opened its doors in 1921 with its flagship Oxford Street store but has, like many of its competitors, been struggling against online stores in recent years. In 2011, it sold off the Waterstone's chain for £53m to Russian billionaire Alexander Mamut.
HMV follows camera store Jessops, which went out of business last week and Comet which closed its doors at the end of last year. There is of course still the possibility that HMV and Deloitte will find a buyer in the same way that the Game Group managed to escape administration last April, being bought up by private investment firm OpCapita.
According to the Financial Times, HMV requested £300m in funds from its suppliers which was refused. Last month, the same suppliers granted the 239 store chain £40m in backing despite its market value only being £14m.
Deloitte has been appointed as the company's administrator and shares in HMV will be suspended. Deloitte and HMV will be attempting to find a buyer for the business but at present, approximately 4,000 jobs are at risk.
'The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection, and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect,' reads a statement from the chain.
Speculation has been mounting that the store was in trouble following the announcement of a month-long 25% off sale, suggesting that it had not performed well over the Christmas period. Deloitte will be keeping the stores open whilst they seek a potential buyer.
HMV first opened its doors in 1921 with its flagship Oxford Street store but has, like many of its competitors, been struggling against online stores in recent years. In 2011, it sold off the Waterstone's chain for £53m to Russian billionaire Alexander Mamut.
HMV follows camera store Jessops, which went out of business last week and Comet which closed its doors at the end of last year. There is of course still the possibility that HMV and Deloitte will find a buyer in the same way that the Game Group managed to escape administration last April, being bought up by private investment firm OpCapita.
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