Home   Kent Business   County news   Article

HMV stores in Maidstone, Tunbridge Wells, Bluewater, Canterbury and Westwood Cross teeter on brink as firm goes into administration

Poor sales in the run up to Christmas could finally spell the end for one of the high streets biggest music and film retailers.

It has been confirmed this morning that HMV, which has stores in Maidstone, Broadstairs, Bluewater, Tunbridge Wells and Canterbury, has gone into administration for the second time in six years.

It was previously rescued in 2013 by retail restructuring specialist Hilco Capital.

HMV in Maidstone is one of those at risk
HMV in Maidstone is one of those at risk

But it admitted the explosion in online streaming services such as Netflix and Spotify was leaving it unable to compete.

Paul McGowan, executive chairman of Hilco Capital said: "During the key Christmas trading period the market for DVD fell by over 30% compared to the previous year and, whilst HMV performed considerably better than that, such a deterioration in a key sector of the market is unsustainable.

"HMV has clearly not been insulated from the general malaise of the UK high street and has suffered the same challenges with business rates and other government-centric policies which have led to increased fixed costs in the business.

Canterbury store survived 2013 crisis - but will it survive latest blow?
Canterbury store survived 2013 crisis - but will it survive latest blow?

"Business rates alone represent an annual cost to HMV in excess of £15m. Even an exceptionally well-run and much-loved business such as HMV cannot withstand the tsunami of challenges facing UK retailers over the last 12 months on top of such a dramatic change in consumer behaviour in the entertainment market."

KPMG has been appointed administrators.

It is not yet clear what will happen to its 125 stores across the UK, although all will continue to trade as normal in the meantime.

Join the debate...
Comments |

Don't have an account? Please Register first!

The KM Group does not moderate comments. Please click here for our house rules.

People who post abusive comments about other users or those featured in articles will be banned.

Thank you. Your comment has been received and will appear on the site shortly.

 

Terms of Comments
We do not actively moderate, monitor or edit contributions to the reader comments but we may intervene and take such action as we think necessary, please click here for our house rules. If you have any concerns over the contents on our site, please either register those concerns using the report abuse button, contact us here, email multimediadesk@thekmgroup.co.uk or call 01634 227989.

Close This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.Learn More