HMV warns of possible job losses and closure of up to 10 stores
HMV has warned of job losses and the closure of up to 10 stores unless it is able to secure new deals with its landlords.
The music retailer confirmed that a further three stores will shut at the end of the month, with new tenants already lined up to move into the properties.
In a statement, HMV said that some stores were no longer viable due to "extortionate" business rates in certain locations.
It comes as the department store chain Debenhams said it was due to close 19 of its stores between January 11 and 25, with a further 28 reportedly set to close in 2021.
HMV said its three stores which will close at the end of January are: HMV Bury St Edmunds, Fopp Glasgow on Byres Road and HMV Nuneaton.
The company said it was also relocating in Lincoln and Plymouth, with new stores opening in both cities at the start of February.
Ten stores are due to close later this month unless the company is able to agree new deals with landlords, HMV said.
"There are currently 10 stores where negotiations with landlords are ongoing and we are hopeful of securing new deals," a HMV spokesman said.
"The closures are no reflection on our superb staff and where we are not able to come to a new agreement or relocate staff within the business elsewhere, unfortunately this does mean some of our staff will lose their jobs."
The 10 stores which are subject to negotiations are: Birmingham Bullring, Leeds Headrow, Bristol Cribbs, Edinburgh Ocean Terminal, Glasgow Braehead, Grimsby, Merryhill, Reading, Sheffield Meadowhall and Worcester.
The HMV Vault, which opened in Birmingham in October last year, and its store at the St John's shopping centre in Leeds would not be affected, the company said.
HMV was purchased in a rescue deal by music mogul Doug Putman in February 2019 after it crashed into administration for the second time in five years in December 2018.
Mr Putman, who runs the Canadian retailer Sunrise Records, closed 15 stores after taking control of the business.
Meanwhile, Debenhams, which entered administration in April 2019 to reduce its debt, is reportedly closing 19 stores this month.
They are:
Altrincham, Greater Manchester – January 11
Birmingham The Fort – January
Kirkcaldy, Fife – January 11
Walton-on-Thames, Surrey – January 11
Wandsworth, London – January 11
Wolverhampton – January 11
Chatham, Kent – January 15
Great Yarmouth, Norfolk – January 15
Slough, Berkshire – January 15
Stockton-on-Tees, Co Durham – January 15
Welwyn, Herfordshire – January 15
Witney, Oxfordshire – January 15
Ashford, Kent – January 19
Canterbury, Kent – January 19
Eastbourne, East Sussex – January 19
Folkestone, Kent – January 19
Southport, Merseyside – January 19
Southsea, Portsmouth – January 19
Wimbledon, London – January 19
Debenhams chief executive Stefaan Vansteenkiste said in a statement: "We are working hard to implement the transformation of Debenhams.
"Despite a challenging retail environment, thanks to our colleagues' hard work and our investor group's commitment we are progressing with our turnaround."
