Jobs axed at stricken retailer HMV

HMVNearly 190 jobs have been axed at stricken music and entertainment chain HMV in the first wave of redundancies following the group's collapse.

Administrators Deloitte said staff had been made redundant across HMV's head office in Marlow, Buckinghamshire, and its distribution centres, but confirmed retail jobs remained unaffected and all stores continue to trade.

HMV went into administration earlier this month, putting more than 4,120 jobs and 223 stores at risk.

Nick Edwards, joint administrator, said the job cuts were a "necessary step in restructuring the business to enhance the prospects of securing its future as a going concern".

Hopes of a rescue deal for HMV have been raised after restructuring firm Hilco - the group behind HMV Canada - bought the company's debt last week.

It is thought Hilco was planning to begin negotiations this week with suppliers and HMV's landlords as part of a plan to salvage the group. Hilco reportedly wants to rescue about half of the stores in the UK as it looks to repeat the strategy that has seen it turn around HMV's Canadian arm, which it bought in 2011.

Mr Edwards said: "We have been very pleased with the level of interest in the business as a going concern, whilst the response from customers has demonstrated the demand to see HMV remain on the high street."

He added: "Equally, the support received from suppliers has been very positive and has enabled us to continue trading during the administration."

Suppliers such as Universal, Warner and Sony are believed to be considering an extended credit deal that would allow HMV to buy CDs and DVDs in instalments over an extended period. They are keen to see HMV survive, as the chain provides an alternative to online retailers and digital download sites.

Hilco is understood to have paid around £40 million for £120 million of HMV's debt, giving it effective control of the business. It is also in talks with the administrators of Jessops, the camera chain, in a move that has the potential for Jessops concessions to open in HMV stores.