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The End of the High St Music Retailer


BigAl

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Pretty grim reading.....t'internet shopping has efectively taken down the last remaining major music retailer on the High Street.

 

If you've got any gift cards from Xmas kicking about, would get in there pronto and hope that they still are being taken.

 

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HMV is poised to go into administration as early as Tuesday, delivering a further blow to Britain’s embattled high streets, after suppliers refused a request for a £300m lifeline for the struggling entertainment retailer.

 

Deloitte, which has been advising HMV’s lending banks, is being lined up as administrator to the chain, putting 4,000 jobs at risk.

 

The expected administration continues the grim start to the new year for the high street, following the collapse of Jessops, the camera retailer, which closed on Friday, with the loss of 1,400 jobs.

 

Late last week, HMV asked its suppliers, which include music labels, game-makers and film companies, for about £300m in additional financing to pay off its bank debt, and fund an overhaul of the company’s business model.

 

But the proposal was turned down, raising fresh fears that the company would be forced into administration.

 

The retailer has been hit by the migration to purchasing music and films online. It sought to combat this trend, diversifying into live venues and consumer electronics, but this was not enough to stem the decline in its core market.

 

A year ago, suppliers stepped in to support HMV, taking a 5 per cent equity stake in the company to secure its position as the UK’s leading entertainment retailer.

 

Neil Saunders, managing director of Conlumino, the retail consultancy, said: “It has been a long time coming, but everyone has known that the writing was on the wall since the day someone first downloaded a digital song.”

 

He added: “People will be very sad to see it go because it is a very emotionally connected brand, which most of us have used and have a lot of resonance with. But the truth is it is just not a part of our purchasing habits as much as it used to be.”

 

The closure of HMV could strike a damaging blow to the UK retail market for video games, CDs and DVDs. According to Verdict, HMV’s share of the combined music and video market, defined as physical and downloaded products bought on and offline, was 22.2 per cent in 2012.

 

HMV’s market share and its sales peaked in 2009, following the closure of Woolworths in 2008. Its market share remained steady for the following few years, despite falling sales, as other competitors such as Zavvi fell by the wayside.

 

Commenting on reports that HMV is about to go into administration, Chuka Umunna MP, Labour’s shadow business secretary, said: “HMV is a national institution that has been a feature of our high streets for over 90 years so this news is deeply worrying. For the sake of HMV’s employees, we hope a way can be found to keep the business going. The demise of HMV - a national institution - would be a sad loss for British retail.”

 

HMV warned last month that it was poised to breach its banking covenants, sending its shares down 40 per cent on the day, and putting its future under threat.

 

Concerns about HMV have intensified in recent days, after the company launched a big promotional sale at the weekend.

 

The company said in December it was facing a “probable covenant breach at the end of January 2013” and blamed poor sales in the run-up to the crucial Christmas trading period.

 

It looked at options, including a company voluntary arrangement – a deal with creditors to prevent administration – as well as the supplier support.

 

Trevor Moore, chief executive of HMV, is the former chief executive of Jessops, while non-executive director David Adams is the former chairman of Jessops.

 

The collapse of HMV would deal a further blow to the high street. Last year saw the failure of JJB Sports, Clinton Cards, Game Group, Peacocks and Blacks Leisure, although most were subsequently acquired in a slimmed-down form.

 

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Fopp is still owned by HMV

 

 

HMV goes then I suspect and fear that Fopp will go.

 

I remember seeing some newsround report back in the early 90s about the internet and how sooner or later we would be able to buy stuff without having to leave the house. And even though as a young teenager in a remote village who relied on occasional trips to Inverness to buy anything the thought of not being able to wander about a shop 'browsing' saddened me.

 

 

The current Kate Winslet advert for some on demand film service where she essentially says how shit it was having to wander about a video shop and actually choose from their selection really pisses me off and only aids my boycott of pair per view TV.

The future of actual social interaction is getting bleaker by the day.

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Fopp is still owned by HMV

 

 

HMV goes then I suspect and fear that Fopp will go.

 

I remember seeing some newsround report back in the early 90s about the internet and how sooner or later we would be able to buy stuff without having to leave the house. And even though as a young teenager in a remote village who relied on occasional trips to Inverness to buy anything the thought of not being able to wander about a shop 'browsing' saddened me.

 

 

The current Kate Winslet advert for some on demand film service where she essentially says how shit it was having to wander about a video shop and actually choose from their selection really pisses me off and only aids my boycott of pair per view TV.

The future of actual social interaction is getting bleaker by the day.

 

Nail firmly on head Tom.

Your post sums up my thoughts on the matter.

Whilst online shopping has many advantages, you simply can't beat going into a record store and searching. Just doesn't seem the same online.

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Indeed, but the Aberdeen one closed.

 

I'm sure that Fopp used to be the only profitable part of the whole HMV group.

Quite certain you're right. I loved the fopp in Manchester, pretty much an ideal record shop with a good selection of DVDs. Aberdeen one was certainly better than hmv and i think there was a virgin?

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Can't say I've been in an HMV for a long time but I do order online from them now and again as they had started to compete with play.com and Amazon but I fear they have left it too late.  They are such an iconic chain (the Oxford Street store is amazing) and it'll be a real shame if they do end up going to the wall.  With One-Up set to close too, do we have any record shops in Aberdeen!?

 

The Union St store will no doubt turn into yet another fucking bookies.

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HMV never diversified at all when the whole digital music thing exploded and stayed stubborn and loyal to old-world media retail.  They gave their customers what they wanted in a particular era of time but resisted change too much when the appropriate time came.  If anything, what surprises me more is that it's taken this long.  The writing was on the wall years ago when Woolworths and Zavvi went down.

 

Hopefully this provides a spike to the small independent stores, but they too need to try and offer people something different.

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Quite certain you're right. I loved the fopp in Manchester, pretty much an ideal record shop with a good selection of DVDs. Aberdeen one was certainly better than hmv and i think there was a virgin?

 

Is there not still one in Manchester? The one in Edinburgh is pretty much the only record shop I ever set foot in.

 

If the death of HMV means the survival of independents like One Up then I think i'd be ok with it overall.

 

All of this seems to just be delaying the inevitable though, I can't be the only one who can't be bothered with the clutter/hastle of having 1000's of CD's lying about when then can all be stored on something the size of a CD case to be listened to at leisure.

 

I've already replaced my whole music collection with digital, and when I find a decent enough way of doing it, i'll be getting rid of my entire DVD collection to replace that with digital too.

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The one in Edinburgh is pretty much the only record shop I ever set foot in.

 

Avalanche records in the Grassmarket is worth a visit - its a bit cluttered though so you cant find a thing and end up buying what you can find.

 

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Inverness News ?@Inverness_News

 

Police called after local man destroys blu-ray section of HMV store after staff refuse to accept his gift voucher.

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I told you that further up this thread!

Like I say, do we have any record shops left in Aberdeen if HMV close?

 

YOU SHOULD DRAW MORE ATTENTION TO IMPORTANT NEWS LIKE THAT!!

 

The only other Record Store I can think of in Aberdeen is the one in the Tunnels (if that still exists).

 

Avalanche records in the Grassmarket is worth a visit - its a bit cluttered though so you cant find a thing and end up buying what you can find.

 

I've recently discovered that I only really use Record Shops to buy books.

 

Hmmm.

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