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| Version 4 | Version 5 |
|---|---|
| HMV on brink of second collapse in six years | HMV on brink of second collapse in six years |
| (35 minutes later) | |
| Music retailer HMV is poised to enter administration for the second time in six years, a move that would affect 2,200 staff at more than 120 stores. | Music retailer HMV is poised to enter administration for the second time in six years, a move that would affect 2,200 staff at more than 120 stores. |
| HMV's sales have been hit by competition from streaming services and online retailers. | HMV's sales have been hit by competition from streaming services and online retailers. |
| The BBC understands the company could appoint administrators as soon as Friday. | The BBC understands the company could appoint administrators as soon as Friday. |
| Holders of gift vouchers are being advised to consider spending them sooner rather than later. | Holders of gift vouchers are being advised to consider spending them sooner rather than later. |
| BBC Money Box presenter and financial journalist Paul Lewis has advised people to use any HMV gift cards immediately. | BBC Money Box presenter and financial journalist Paul Lewis has advised people to use any HMV gift cards immediately. |
| According to consumer publication Which?, whether vouchers and returns will be accepted following administration depends on the administrators. | According to consumer publication Which?, whether vouchers and returns will be accepted following administration depends on the administrators. |
| Their role is to "try and save the company", and in doing so, they "may take the decision not to accept returns". | Their role is to "try and save the company", and in doing so, they "may take the decision not to accept returns". |
| 'Sand not rocks' | 'Sand not rocks' |
| In 2013, HMV was taken over by Hilco, which specialise in restructuring companies. | In 2013, HMV was taken over by Hilco, which specialise in restructuring companies. |
| Hilco bought 141 stores from the chain, in a deal worth about £50m. | Hilco bought 141 stores from the chain, in a deal worth about £50m. |
| The firm has seen HMV host live events in store, with musicians including Kylie Minogue, Stormzy and The Darkness. | The firm has seen HMV host live events in store, with musicians including Kylie Minogue, Stormzy and The Darkness. |
| Digital music revenue overtook sales of physical formats like CDs and records for the first time in 2012. | Digital music revenue overtook sales of physical formats like CDs and records for the first time in 2012. |
| Since then, online shopping, downloads and streaming provided by platforms such as Amazon, Spotify and Netflix, have continued to eat into sales of physical music. | |
| Julie Palmer, partner at business consultancy Begbies Traynor, said the fall of HMV had been "coming for many years". | |
| She added: "It has been revealed that the business turnaround has been built on a bed of sand rather than rocks." | |
| Weak retailing | Weak retailing |
| Richard Lim, Chief Executive, Retail Economics, said HMV's situation came amid a weak retailing climate: "Poor Christmas trading has claimed its first victim." | Richard Lim, Chief Executive, Retail Economics, said HMV's situation came amid a weak retailing climate: "Poor Christmas trading has claimed its first victim." |
| But the chief executive of the Entertainment Retailers Association, Kim Bayley, said there was hope: "What is clear is that following its first move into administration in 2013, HMV has enjoyed a remarkable turnaround and it is conceivable that this will happen again. | But the chief executive of the Entertainment Retailers Association, Kim Bayley, said there was hope: "What is clear is that following its first move into administration in 2013, HMV has enjoyed a remarkable turnaround and it is conceivable that this will happen again. |
| "The fact is the physical entertainment market is still worth up to £2bn a year so there is plenty of business there." | "The fact is the physical entertainment market is still worth up to £2bn a year so there is plenty of business there." |
| While Christmas is normally a time of higher revenues for retailers, the number of shoppers hitting the post-Christmas sales dipped this year. | While Christmas is normally a time of higher revenues for retailers, the number of shoppers hitting the post-Christmas sales dipped this year. |
| Britain's shops have also faced uncertainty over Brexit, which sparked a fall in the pound and therefore raised the price of imported goods, as well as rising labour costs, higher business property taxes and unseasonably warm weather. | |
| HMV, known for its iconic logo featuring the dog and trumpet, is Britain's last surviving national music retailer. | HMV, known for its iconic logo featuring the dog and trumpet, is Britain's last surviving national music retailer. |
| It was launched by English composer Edward Elgar in 1921, selling gramophones, radios and popular music hall recordings. | It was launched by English composer Edward Elgar in 1921, selling gramophones, radios and popular music hall recordings. |