Published: 16/01/2019 By Katie KellawayIn January 2013, HMV fell into administration before being acquired by Hilco in a reported £50 million deal.
The Chain fell into Administration again shortly after Christmas due to a decline in sales of physical media such as DVDs and CDs and the rise of streaming services and digital downloads.
The Company is continuing to trade whilst a buyer is sought for the business. Online discount club, Buyvia, did announce that it had drafted plans and was in talks to rescue the Chain. The proposal would have seen it save a number of retail stores and overhaul the retail giant’s digital presence. However, they’ve released a press statement at https://buyvia.co.uk/blog/business/buyvia-ends-hmv-rescue-talk which confirms that they’ve abandoned their alleged plans to rescue and revamp HMV and claims that it abandoned the deal due to concerns regarding Hilco’s ownership.
On Twitter, Hilco executive chairman, Paul McGowan, accused BuyVia of using a difficult situation to promote their brand in the UK (https://twitter.com/PaulPMcGowan/status/1082991972502130688) and claims that they never expressed any interest in acquiring HMV.
According to Sky News, Administrators, KPMG, have requested interested parties to table offers for the chain by 15 January 2019 so it remains to be seen whether the jobs of the 2,000+ employees will be saved.
It is obvious that the music industry (and the High Street in general) is changing and digital downloads, streaming and the likes of Netflix and Spotify have taken their toll. Is there a place for a physical media business like HMV in this ever changing market?