Music Retailer HMV Appoints Administrators, 4000 Jobs At Risk
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."
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