HMV boss Trevor Moore may have delivered an upbeat message to journalists yesterday, but administrator Deloitte has warned that it’s a tough market for entertainment retailers at the moment.
The retailer is burdened by around £200m of debt and still seems to be appealing to the goodwill of suppliers in the hope that they have a change of heart and decide to back Moore’s new vision.
But following its official appointment as administrator last night, Deloitte issued a cautious statement about the task ahead.
“HMV is an iconic retailer and continues to be a very popular brand, but as we have seen with many high street retailers, the market is changing rapidly and conditions are currently very tough,” joint administrator and restructuring services partner at Deloitte Nick Edwards stated.
“Following our appointment, we are working closely with management and staff to stabilise the business in order to continue trading whilst actively seeking a purchaser for the business and assets.
“We appreciate the cooperation and support from the staff, customers, suppliers and landlords at what is clearly a difficult time.”
HMV has 223 UK stores and employs 4,123 workers.
Deloitte also confirmed that HMV Guernsey, HMV Hong Kong, HMV Ireland, HMV Singapore and 7Digital Group remain outside of the insolvency process.