HMV, with 250 stores, failed to reach agreement on its debt situation and went into administration on Tuesday, 15 January. The administrators are Deloitte and Touche.
Trevor Moore is the Chief Executive, having been appointed fairly recently, having previously run Jessop Group Limited, another high-street name, which went into administration just a few days prior. Was it poor management, the impact of recession or the force of online shopping that brought these firms to their knees. What questions does this raise for other UK high street names?
According to analysts, HMV "did not react early enough to the digital trend" and have a business model that is "irrelevant and unsustainable". Both HMV and Jessops have online businesses but rather low profile ones.
HMV has had a great history, opening it's first store in 1921, expanding in the 1970s and going public on the LSE in 2002. Simon Fox became Chief Executive in 2006, and did a big transaction in 2009, buying MAMA Group for £46m (sold in December 2012 for £7.3m to Lloyds Development Capital). It started closing stores in 2011 to reduce its debt pile.
Retail consulting firm Conlumino said investing in HMV would be "betting against the future".
Trevor Moore is the Chief Executive, having been appointed fairly recently, having previously run Jessop Group Limited, another high-street name, which went into administration just a few days prior. Was it poor management, the impact of recession or the force of online shopping that brought these firms to their knees. What questions does this raise for other UK high street names?
According to analysts, HMV "did not react early enough to the digital trend" and have a business model that is "irrelevant and unsustainable". Both HMV and Jessops have online businesses but rather low profile ones.
HMV has had a great history, opening it's first store in 1921, expanding in the 1970s and going public on the LSE in 2002. Simon Fox became Chief Executive in 2006, and did a big transaction in 2009, buying MAMA Group for £46m (sold in December 2012 for £7.3m to Lloyds Development Capital). It started closing stores in 2011 to reduce its debt pile.
Retail consulting firm Conlumino said investing in HMV would be "betting against the future".
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