HMV calls in administrators {HMV bankruptcy}

The Sun ^ | 15 January 2013 | Steve Hawkes

[Cronos]

The 92-year-old music store become the latest high street casualty of the credit crisis and called in administrators.

Some 4,350 jobs are at risk if the chain closes.

The blow follows the recent collapses of camera trader Jessops and electrical retailer Comet that together cost more than 8,000 jobs.

Today restructuring giant Deloitte will be confirmed as administrator and will look to trade HMV’s 230 UK stores and find a buyer.

But experts said that at BEST a profitable “core” of stores will remain trading.

It is understood HMV has emailed all stores telling staff not to accept gift card

..HMV has been hammered by the rise of the internet and music downloads. Last year digital downloads hit £1billion as CD and DVD sales plummeted.

..“The HMV brand certainly has value, but the bottom line is that there is no real future for physical retail in the music sector.”

HMV is the best-known high street casualty since Woolworths in 2008.

THE first HMV opened in London in 1921. The initials stand for His Master’s Voice — a painting of a dog and a gramophone that inspired its logo.

It started out selling radio and TV sets but expanded its record shops in the late ’60s.

...People will feel sad about HMV’s collapse but how many spent money there? First Amazon, then digital downloads became far more attractive.

[Cronos]

another brand bites the dust

[ButThreeLeftsDo]

I always love to browse their shelves in the UK for the CD’s you can’t get in this country anymore.

[max americana]

They had a massive store in Vancouver I usually go to, but it closed 2-3 years ago. Their 2nd floors were more full of people as they chocked the rare LP’s there.

[PUGACHEV]

I had a friend who owned a very successful record store located in a major East Coast city. Despite the fact that he had done well for many years, and was still doing well, by 1994 he could read the writing on the wall. He saw his store as closing within a decade, if not sooner. I had a conversation with him then and he called his business “buggy whips”.

[Fiji Hill]

Canterbury Records in Pasadena, Calif., on a prime location at Colorado Blvd. near Lake Ave. is still in business and seems to be thriving. Here, one can find CD’s that are hard to get at stores such as Best Buy. They also sell vinyl recordings and even some 45’s and 78’s.

[hinckley buzzard]

There seems to be a vigorous renaissance of interest in vinyl among collectors and audiophiles. Your friend may want to resurrect his buggy whip business.

[Cronos]

what did he do? did he try to diversify?

i wonder if bookstores would go the same way?

I think the big box bookstores will die out, but those that diversify into other things, toys, gifts, packaging materials will survive and strangely, if you've seen "You've got mail" -- I think now the small, niche bookstores with personalized service will survive, as they have charm.

[Cronos]

vinyls may be the best way forward — a niche market.

[dennisw]

Money’s too tight to mention

[PUGACHEV]

"what did he do? did he try to diversify?"

My friend sold out to his partner the next year. The partner then expanded the inventory to include vinyl and used CDs, but it asn't enough to offset declining sales. Next, the store closed its downtown locaton, and re-opened in a prosepous suburban setting, where the overhead was lower, but the trafic was about the same. That didn't work. Finnaly, he got into local music promotions and booked them with national acts. That drove him under.