After struggling to meet financial deadlines with banking covenants, legendary entertainment retailer HMV has gone into administration. The company released a statement last night, which confirmed that Deloitte will be handling the process.
Stores will be kept open while the administrators seek a buyer for the beleaguered company - but job losses are expected to be within the thousands, according to a report by the Independent
. Digital downloads and online retail has been described as the cause for the chain's downfall.
HMV's financial issues did not happen overnight. This time last year, the retailer announced that it was closing of 60 shops
and expected to miss its profit targets for the financial year. It seems that the poor old dog didn't quite have the agility to see itself through that spot of turbulence.
For those of you wondering, gift cards and vouchers won't be accepted in store while the company is going through administration.
It follows the closure of other big-name retail chains in recent weeks, as well as GAME's own administration woes last year. SPOnG wishes all the best to those affected by this sad news.