Top music retail chain HMV has appointed administrators, the UK equivalent of bankruptcy protection. HMV has 239 stores and approximately 4,350 employees in the U.K., Singapore, and Hong Kong. It went public in 2002, but has been struggling in recent years.
The official statement:
"On 13 December 2012, [HMV] announced that as a result of current market trading conditions, the Company faced material uncertainties and that it was probable that the Group would not comply with its banking covenants at the end of January 2013. The Company also stated that it was in discussions with its banks.
Since that date, the Company has continued the discussions with its banks and other key stakeholders to remedy the imminent covenant breach. However, the Board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection, and in the circumstances therefore intends to file notice to appoint administrators to the Company and certain of its subsidiaries with immediate effect."