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HMV to go into administration- vouchers no longer accepted

By laura_enfield  |  Posted: January 15, 2013

HMV in Gloucester

HMV in Gloucester

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HIGH Street entertainment chain HMV has announced it is to go into administration.

The music and DVD company, which has stores in Gloucester and Cheltenham, is expected to call in administrators from Deloitte today.

The company, which opened its first shop on Oxford Street in, has a workforce of more than 4,500 people, whose jobs are all now at risk.

It is the latest retail casualty after camera retailer Jessops shut its shopslast week.

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A spokesman for HMV has confirmed it is no longer accepting vouchers as payment at any of its 240 branches and is not issuing them either.

Trading in HMV shares on the London Stock Exchange has been suspended.

Deloitte LLP is expected to will keep HMV's stores in the UK and Ireland open while it looks at the business and  for potential buyers.

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  • B_C_resident  |  January 16 2013, 6:29PM

    My friends and I were the first people through the doors to the Cheltenham store when it opened! I had a HMV mug and we saw Edwyn Collins :) We were middle spread of The Echo as well!! I shall be sad if they close as I like buying a 'physical' copy of my DVD's and CD's , and browsing and seeing what there is out there. I hope they find someone to bail them out and that they continue on :)

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  • daveofglos  |  January 16 2013, 5:48PM

    Apologies - I was wrong - it's not WHSmith who will go next - Blockbusters has just gone into administration!

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  • pingu61  |  January 16 2013, 10:37AM

    I don't think that anyone should have to analyse the prospects for a business, especially a major store chain, before buying gift vouchers. Selling gift vouchers in the run-up to Christmas while knowing that the business may go bust early in the new year is unethical and borderline criminal. Not honouring Gift-cards is also very dangerous. If the chains survives, it's future revenue through gift-cards is now dead.

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  • daveofglos  |  January 16 2013, 7:38AM

    onelifeonly - there were news reports on HMV before Xmas - perhaps you didn't read or hear them. Try doing a date search on Google News for December - you'll see the range then. For example The Independent reported on 23 December - "HMV is among the retailers under pressure, having issued a "going concern" warning earlier this month. The company, which has 238 stores, suffered a £37.3m loss during the six months ending 31 October, and warned that it would almost certainly breach banking covenants in January." The next retailer to go under may be WHSmith - they're also on shaky ground and one commentator said he was surprised Jessops went before WHS... On the question of buying gift vouchers in the first place - why? It just ties you into the chain involved. I can only see a reason if you want to sent money to people far away.

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  • onelifeonly  |  January 16 2013, 6:26AM

    daveofglos, sorry yes of course it was well known they were in trouble, silly me for spending the best part of £100 on vouchers knowing it was all going to the companys debts!!!, of course it was not common knowledge to alot of people, Maybe you could let the echo know in advance of any shops in trouble so we do not go and spend all our hard earned cash there! and the poor workers who I feel sorry for, will not apply for jobs where they are going to lose them six months down the line.

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  • Mat1274  |  January 16 2013, 1:29AM

    Sad for those whose jobs are under threat. However, hopefully Badlands will see an increase in sales and at the same time introduce and inspire the younger generation to some less mainstream groups/artists. Bring back Martian Records on Lower High St...

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  • daveofglos  |  January 15 2013, 10:20PM

    Unfortunately it was well known in December that HMV would be in trouble with the banks in January. This was certainly a case of no surprise...

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  • onelifeonly  |  January 15 2013, 6:04PM

    My son is upset as he had vouchers for Christmas, he is now unable to use them to go towards a game he was saving up for, I have brought him up to respect money and save up for what he would like, so I will replace them with cash which I can not really afford but its not his fault and why should he go without, and hopfully somewhere down the road I can claim the money back on the vouchers which I still have a reciept for. (this Christmas I will not buy vouchers from anywhere, I will make sure cash is given).

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  • geraint2010  |  January 15 2013, 2:50PM

    This is simply natural retail evolution. HMV who, in their day were instrumental in the closure of thousands of excellent independent music stores across the country, are themselves now a victim of their own failure to adapt to market trends. While online sales and downloads and out-of-town supermarkets are now the first port of call for most customers there will always be a place for the more specialist music store which may yet include a slimmed-down HMV.

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  • gallopingbear  |  January 15 2013, 1:21PM

    It's so sad. HMV has been around since our grandparents time. It's something that we can all identify, and all have childhood memories of going to buy records from. I hope that the decent thing is done and vouchers are refunded. I realise that those with worthless vouchers just have to join the queue of people waiting to be paid, but investors and people who have money tied up in the business knew the risk they were taking and presumably had the cash to do it with. People who bought vouchers as Christmas presents did so in good faith and will be very upset that there was no warning. I'm sure there are only a few thousand pounds worth of vouchers outstanding. Hope the administrators do the right thing. Christmas spirit and all that.

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