The retailer has 238 stores across the UK and Ireland and 9 Fopp stores.
It is thought that HMV’s suppliers, which had thus far supported the company
and provided financial help, may have turned down a request for further
Last week HMV began a massive sale in an attempt to boost revenues, sending
its shares down more than a fifth on Friday.
Sources at the time claimed the promotion was “nothing to do” with the
It had already raised cash by selling off book store Waterstones for £53m and
the Hammersmith Apollo music venue for £32m.
It has also shifted its emphasis from the fast-declining CD and DVD market to
new technology products.
Earlier on Monday sources told Reuters that private equity firm Apollo Global
Management did not intend to take over HMV, despite having bought some of
The development at HMV is the latest blow to the high street which has seen
the collapse of stores such as JJB Sports and Comet in recent months.
Camera retailer Jessops fell into administration last week.
At HMV’s interim results in December it revealed a 10.2pc fall in
like-for-like sales and posted a total group loss of £36.1m.
HMV’s first store was opened in July 1921 by Edward Elgar.
The retailer floated on the London Stock Exchange in May 2002, valued at £1bn.
On Monday its shares closed at 1.1p, down 8.3pc on the day, valuing it at just
HMV’s chief executive Trevor Moore, who previously led Jessops, took over in
September from Simon Fox, who had spent six years at the helm.
At HMV Mr Moore instigated a series of reforms that he said were intended to
improve in-store service.
But he warned in December: “While I can see many future opportunities it is
clear to me that the current market conditions, and in particular the
volatility in the group’s core music, visual and games markets, create
uncertainty as to the level of trading results that can be achieved in the
Spokesmen for HMV and for Deloitte declined to comment.
HMV shares over the past 10 years
HMV to call in administrators within hours – Telegraph.co.uk
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