HMV rids itself of a further 484 employees and 37 stores

Troubled music and DVD retailer HMV will axe a further 484 employees and close an extra 37 stores, administrators Deloitte announced Wednesday.

Troubled music and DVD retailer HMV will axe a further 484 employees and close an extra 37 stores, administrators Deloitte announced Wednesday.

The closures come on top of the 66 stores already set to be shut and bring the total number of redundancies close to 1,500 - almost half the workforce.

All four Heathrow airport sites will go along with a fourth Glasgow store. The flagship Oxford Street store will remain intact for now.

Nick Edwards, a joint administrator, said: "As part of our ongoing review of HMV's financial position, we have undertaken a further review of the store portfolio and have identified an additional 37 stores for closure. This step has been taken in order to enhance the prospects of the restructured business continuing as a going concern.

"Together with the previously identified 66 closures, this restructuring will result in a residual portfolio of some 116 stores.

"We are extremely grateful to the staff for their continued strong support and commitment during an understandably difficult period. All other key stakeholders including suppliers and landlords remain supportive and we appreciate their ongoing assistance."

The company went into administration in January after fierce competition from online retailers brought sales down and debts up.

HMV is continuing talks with specialist investor Hilco, which acquired the secured debts from Royal Bank of Scotland and Lloyds Banking Group, assuming effective control of the collapsed firm.

Hilco purchased HMV Canada in 2011 and has built ties with several distributors.

RD

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