They say bad news comes in threes and ain’t that the truth. Here’s the first of three bad news stories.
HMV has entered administration for the second time.
According to the BBC, HMV’s owners Hilco, which previously took the company out of administration in 2013, blame business rate levels, changes in shopping habits and the move to digital for the company’s current struggles.
HMV’s Executive Chairman, Paul McGowan and owner Hilco Capital, said: “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.”
Is this the end for HMV?
It’s not looking good, however the company has survived uncertainty once before, so it might do it again. While the likes of Netflix and Spotify are convincing many households to switch to digital over physical media, according to reports the physical market is still worth around £2bn, so HMV could come out the other side of this latest problem – so long as it can find the right way out.
HMV will remain trading for now. Those who were given gift vouchers for Christmas are being advised to spend them NOW!