HMV "to enter administration tomorrow morning"

Ben Parfitt
HMV

It looks like the time has come for HMV.

Having reported just moments ago that the HMV board are tonight holding discussions about what action to take next, mutiple sources are now claiming that the retailer will enter administration in the morning.

The Telegraph reports that “HMV going into administration tomorrow morning” while Channel 4 adds that “sources say HMV is to go into administration Tuesday morning”.

ITV's business editor Laura Kuenssberg reports that Deloitte have been appointed ahead of an official announcement in the morning.

The news comes after MCV reported earlier tonight that the directors of beleaguered retailer HMV are said to be locked in emergency talks tonight as the retailer considers entering administration.

Sky News reports that a number of options are currently being discussed amongst execs, one of which is administration. However, further action from lenders could yet give HMV a further stay of execution.

An announcement is expected later tonight or tomorrow. The chain employs around 4,000 workers and has 230 UK stores.

In more bad news, the US private-equity firm that had been reportedly been eyeing up UK retailer HMV has ruled out a possible purchase.

The Independent reports that Apollo Global Management acquired six per cent of HMV’s debt from Allied Irish Banks last month – a move many interpreted as the first step toward an acquisition.

But an unnamed source has now told the paper that “no intention to seek to acquire any more of HMV’s bank debt at this stage”, leaving the retailer likely to breach its banking covenants test at the end of the month unless ongoing talks with a banking consortium prove successful.

The retailer last week kicked off a Blue Cross Sale, although it firmly denied that the move was designed to ease the financial pressures it is facing.

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Tags: Retail , HMV , administration , deloitte

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