The iconic store first launched in 1921 but in recent years has struggled to compete with online retailers who offer music, DVD and games instantly.
Deloitte have said they will keep the stores open for now until they can find a buyer. The business has failed over the past decade to adapt to the way consumers buy digital products. In a statement released by the company, the board said they failed to reach a position to continue trading in current terms.
“The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection, and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect. The directors of the company understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business.”
CEO of global music analyst Musicmetric has said that HMV failed to “embrace the internet”.
“It’s a sad but inevitable fate for a much-loved stalwart of the music industry. But where retailers like John Lewis have embraced the internet – building customers through its Click and Collect service – HMV simply failed to adapt to the changing tastes of music fans and the seismic shift we’ve seen as everything has gone digital.” – Gregory Mead, CEO of Musicmetric