HMV is set to close its flagship Oxford Street store in March 2027, after its landlord proposed doubling the rent.
It said the proposed rent increase, alongside a requirement to fund substantial renovations to the building, would make its 363 Oxford Street store commercially unviable, despite sales climbing 25 per cent year on year..
The closure comes less than four years after HMV returned to its historic home in November 2023, having been absent from the site for four years.
HMV is now searching for a new flagship location in London’s West End, with plans to open a replacement store in 2027.
HMV managing director Phil Halliday said: “This is a special store, it’s where we began 100 years ago and bringing it back to life in 2023 was a big moment in our recent history.
“It’s frustrating that it has been made commercially unviable. However, we are looking ahead, and our focus is now on what we do to make exciting steps for HMV in 2027.”
He added: “We’ve worked hard to make 363 Oxford Street a destination for pop-culture fans, bringing live performances, artist signings and a huge range of music and entertainment back to the heart of London.
“However, regardless of how much a location means to us, it has to make commercial sense.”
The closure comes as HMV continues to grow its UK business, with like-for-like sales up 15 per cent in the first nine months of 2026.
It expects UK revenue to top £240m this year, compared with £212m in 2025 and £165m in 2019.
HMV currently operates 123 UK stores, while its online business is forecast to generate £50m in sales this year. Its European operations are expected to contribute a further £15m.
The company is also investing in a new website and warehouse facility, both scheduled to launch in March 2027.
HMV said negotiations for a replacement West End flagship were progressing and that it hoped to transfer staff from Oxford Street to the new location.
In the meantime, it is exploring opportunities to redeploy affected employees across its other London stores and head office.
Halliday said: “We hope to redeploy affected team members through other London stores and Head Office roles and are exploring ways to minimise the impact on jobs while we seek a new flagship site.”
He added: “We believe passionately in the future of the high street and in the importance of places where people can discover music, meet artists and share their passions, and that hasn’t changed.
“We’re actively looking for a new location in the West End and are determined to give London a store that music fans can be proud of.”
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