Thursday, February 21, 2019

HMV Guernsey falls into administration


HMV Guernsey has fallen into administration, following its parent company and leaving the island without a record store, it has been announced.

Entertainment retailer HMV UK collapsed into administration in January after failing to manage its debt amid disappointing sales, though administrators at business advisory firm Deloitte had been hopeful of finding a buyer for the Guernsey operation.

Last week, restructuring specialist Hilco entered into talks with administrators to save the UK business from administration in a £50 million deal which would see some 130 store remain open, saving thousands of jobs.

However, earlier this week it was reported that HMV owed over £20 million in tax prior to its collapse, while the HMV Group‘s bankers were owed £109 million and trading company HMV Music Limited owed other creditors £53.3 million.

Deloitte‘s Rick Garrard and Nick Edwards have been appointed administrators to the company as they pursue a potential sale of part or all of the business.

Commenting on the implications of the move, Garrard said: “The Guernsey store continues to trade as normal and continues to accept gift vouchers.

“We will work closely with the HMV administrators in the UK, local management and staff to continue trading while pursuing a sale of the business.”