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HMV to go into administration :(

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    AngiBearAngiBear Posts: 2,978
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    Thats HMV closing 11 Scottish stores including 3 in Glasgow, 2 of which I loved going into, leaving the one in Argyle Street and Buchanan Street:

    http://www.bbc.co.uk/news/uk-scotland-scotland-business-21367915

    I assume the high rents in Braehead and Silverburn must have been partly to blame too.
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    GARETH197901GARETH197901 Posts: 22,291
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    i know the rents in the Grand Arcade in Wigan where the Wigan Branch is are notoriously high,shame really as apart from the paltry selections of CD's in the Supermarkets(Tesco,ASDA and Morrisons) we have no proper music store anymore
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    AngiBearAngiBear Posts: 2,978
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    i know the rents in the Grand Arcade in Wigan where the Wigan Branch is are notoriously high,shame really as apart from the paltry selections of CD's in the Supermarkets(Tesco,ASDA and Morrisons) we have no proper music store anymore

    Its kinda shocking the amount of shopping centres that would rather have empty units than agree on maybe lower rents a wee bit for businesses in trouble.
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    GARETH197901GARETH197901 Posts: 22,291
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    AngiBear wrote: »
    Its kinda shocking the amount of shopping centres that would rather have empty units than agree on maybe lower rents a wee bit for businesses in trouble.

    the business rates councils charge don't help either,i watched an article on Five News back when they first went into administration,and the business expert they had on said that in the olden days Business rates for shops used to be right,but ever since increase in online sales they are wildly out of sync with a comparable online seller selling from a warehouse,the online seller pays less business rates than the shop but sells considerably more,she said that they need to drop business rates in high streets and increase it for online sellers such as Amazon etc to bring it all back into sync

    everyone treats the High Street as its still king,when in reality its a shadow of its former self
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    Clarkie66Clarkie66 Posts: 5,895
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    I'm pleased to see that the Sunderland and Newcastle branches are not on the list of closures (so far anyway!) I usually have a browse each week when I am in Sunderland and I wouldn't like to have to rely on the supermarkets and the likes of Amazon to buy physical CDs. I think people are much more likely to be CDs or DVDs as a gift from a shop rather than on-line, if you know that they can easily take them back or exchange.I suppose that is a bit dubious now too, after their antics refusing returns and gift cards etc
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    AngiBearAngiBear Posts: 2,978
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    the business rates councils charge don't help either,i watched an article on Five News back when they first went into administration,and the business expert they had on said that in the olden days Business rates for shops used to be right,but ever since increase in online sales they are wildly out of sync with a comparable online seller selling from a warehouse,the online seller pays less business rates than the shop but sells considerably more,she said that they need to drop business rates in high streets and increase it for online sellers such as Amazon etc to bring it all back into sync

    everyone treats the High Street as its still king,when in reality its a shadow of its former self

    I remember reading that the ones on the High Street would close and they would try and keep the shopping centres ones open. This has not been the case for the ones in Glasgow. HMV took over the big Virgin shop at the top of Buchanan Street and have one in Argyle Street, about 5-10 minutes walk away. The 3 that are closing are in shopping complexes.

    I agree with you that the High Street is a reality of its former glory. Argyle Street in Glasgow is a prime example, full of pound shops and charity shops now with the odd larger shop in the mix.
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    occyoccy Posts: 65,420
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    66 stores are to go. HMV Trocadero, London is one of the causalities.
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    gelbma0991gelbma0991 Posts: 4,783
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    Glad my store isn't one of the ones closing! It's a shame for the stores that are though :(
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    AngiBearAngiBear Posts: 2,978
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    Thats HMV closing another 37 stores:

    http://www.bbc.co.uk/news/business-21517862

    This will leave 1 in Glasgow Buchanan Street and none in Edinburgh. Still no news on Fopp though!
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    Martin PhillpMartin Phillp Posts: 34,970
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    AngiBear wrote: »
    Thats HMV closing another 37 stores:

    http://www.bbc.co.uk/news/business-21517862

    This will leave 1 in Glasgow Buchanan Street and none in Edinburgh. Still no news on Fopp though!

    Considering Deliotte still haven't announced any Fopp closures, it may be sold off separately.
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    AngiBearAngiBear Posts: 2,978
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    Considering Deliotte still haven't announced any Fopp closures, it may be sold off separately.

    Hope so, I love Fopp and the Fopp Swap. Still very sad to see HMV closing around Glasgow as I love to browse and always buy something.
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    AndyTSJAndyTSJ Posts: 1,656
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    Very sad that they are closing yet more stores, especially given the interest that was expressed at the outset. HMV aren't the problem, Deloitte are in my opinion. Deloitte don't have a very good track record with selling businesses as a going concern. Unlike PWC who even managed to keep "Game" alive last year when they went into administration. The biggest attraction to HMV is their presence up and down the country, but not anymore. The music and movie industry has expressed the need to continue with a large high street presence, but again.. Deloitte close over 100 stores. Well done Deloitte.
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    GARETH197901GARETH197901 Posts: 22,291
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    gelbma0991 wrote: »
    Glad my store isn't one of the ones closing! It's a shame for the stores that are though :(

    Looks like you wont be glad anymore:(
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    Theo_BearTheo_Bear Posts: 997
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    AndyTSJ wrote: »
    Very sad that they are closing yet more stores, especially given the interest that was expressed at the outset. HMV aren't the problem, Deloitte are in my opinion. Deloitte don't have a very good track record with selling businesses as a going concern. Unlike PWC who even managed to keep "Game" alive last year when they went into administration. The biggest attraction to HMV is their presence up and down the country, but not anymore. The music and movie industry has expressed the need to continue with a large high street presence, but again.. Deloitte close over 100 stores. Well done Deloitte.

    Game was still had a viable business model when it collapsed. HMV hasn't been viable since the day MP3s and DVD/Blu-ray rips hit the internet. Although I entirely agree with you about the bunch of financial rapists that work for Deloitte.
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    AndyTSJAndyTSJ Posts: 1,656
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    Theo_Bear wrote: »
    Game was still had a viable business model when it collapsed. HMV hasn't been viable since the day MP3s and DVD/Blu-ray rips hit the internet. Although I entirely agree with you about the bunch of financial rapists that work for Deloitte.

    I disagree, HMV has been turning over a billion pound a year. That's a viable business.
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    GARETH197901GARETH197901 Posts: 22,291
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    AndyTSJ wrote: »
    I disagree, HMV has been turning over a billion pound a year. That's a viable business.

    agreed,its a viable albeit badly mismanaged business,putting far too many eggs into one basket,they need to go back to basics and remember what made them a name in the first place,leave the tablets and all that stuff to the likes of Currys,and concentrate on Music and Video and Games
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    Theo_BearTheo_Bear Posts: 997
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    Except for a copy of the PSB's Very with the limited edition orange case which I picked up for a quid on eBay to replace a cracked case, I haven't bought a CD in 10 years. I want to listen to something I don't have, I use Grooveshark. Now, if I'm at all representative of even 10% of consumers, I'm a huge problem for HMV.

    HMV has no business model except "fleece the gullible". I suspect Deloitte will close the whole company down within 6 months.
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    InkblotInkblot Posts: 26,889
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    Theo_Bear wrote: »
    Game was still had a viable business model when it collapsed. HMV hasn't been viable since the day MP3s and DVD/Blu-ray rips hit the internet.

    On that principle, the music and film industries as a whole are no longer viable and we should get used to whistling and reading aloud.
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    AndyTSJAndyTSJ Posts: 1,656
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    Theo_Bear wrote: »
    Except for a copy of the PSB's Very with the limited edition orange case which I picked up for a quid on eBay to replace a cracked case, I haven't bought a CD in 10 years. I want to listen to something I don't have, I use Grooveshark. Now, if I'm at all representative of even 10% of consumers, I'm a huge problem for HMV.

    HMV has no business model except "fleece the gullible". I suspect Deloitte will close the whole company down within 6 months.

    So why is my HMV full with lines at the till every time I go in there?
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    Theo_BearTheo_Bear Posts: 997
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    AndyTSJ wrote: »
    So why is my HMV full with lines at the till every time I go in there?

    I have no idea, but I bet there aren't many people paying £20 for a chart Blu-ray or £15 for a CD they can get at Amazon or Asda for a tenner or less.

    If, purely based on you observing the length of till queues at you local branch, HMV does as much business as you suggest, it would beg an obvious question. Where's all the money gone?
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    GARETH197901GARETH197901 Posts: 22,291
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    Theo_Bear wrote: »
    Except for a copy of the PSB's Very with the limited edition orange case which I picked up for a quid on eBay to replace a cracked case, I haven't bought a CD in 10 years. I want to listen to something I don't have, I use Grooveshark. Now, if I'm at all representative of even 10% of consumers, I'm a huge problem for HMV.

    HMV has no business model except "fleece the gullible". I suspect Deloitte will close the whole company down within 6 months.


    i wouldn't say they've been fleecing the gullible as there are still people out there who don't buy online,and they've been filling that need,albeit at a premium price but as i have said previously a lot of that premium covers the rent of the shop(the shop that is being closed here is in a shopping centre and the rents are high due to it being a new development),the power bill(business bills for energy are quite frankly ridiculous even compared to household ones)and business rates and wages

    all these costs have to be passed on somewhere

    and yes i know that online shops have similar costs but the rents and business rates tend to work out less overall for warehouses compared to high street stores,hence the difference in pricing
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    occyoccy Posts: 65,420
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    103 Stores have been lost. It seems the big announcement that they will keep them isn't going to happen.
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    AndyTSJAndyTSJ Posts: 1,656
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    Theo_Bear wrote: »
    I have no idea, but I bet there aren't many people paying £20 for a chart Blu-ray or £15 for a CD they can get at Amazon or Asda for a tenner or less.

    If, purely based on you observing the length of till queues at you local branch, HMV does as much business as you suggest, it would beg an obvious question. Where's all the money gone?

    I was more than happy to pay 14.99 for the Blu-ray of "Skyfall" on Monday. I wasn't the only one in line either. Maybe that's why my local HMV isn't closing. I'm not going to be a hypocrit and complain about the local economy where I live and not do anything to support the businesses that are located there - not to mention the people they employ - that's one, but not the only reason why I would prefer to buy from them than online.

    Bad management is why they ran out of money. Debts built up during the good times have been largely responsible for the bulk of their problems from what I am aware, as well as the abhorrent rates that shops have to pay simply to exist especially in prime locations in major cities in this country. If you look at some of the locations, especially in London, that were running a loss - that's your reason why.
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    AndyTSJAndyTSJ Posts: 1,656
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    occy wrote: »
    103 Stores have been lost. It seems the big announcement that they will keep them isn't going to happen.

    Shortly after entering administration, Deloitte went on record as stating that they had over 50 interested parties in HMV. But Deloitte have a track record of failing to keep businesses going so their motives behind the continued closures are open to speculation.
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    VerenceVerence Posts: 104,602
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    At least the Norwich HMV is still open.....



    for now
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