HMV, the high street music and DVD chain, have announced that they will appoint administrators.
Deloitte have been appointed as administrators as HMV face becoming the latest casualty of the high street. The announcements puts 4,350 jobs at risk.
Deloitte will keep HMV’s 239 stores in the UK and the Republic of Ireland open while it assesses the prospects for the business and seeks potential buyers, although trading in HMV shares on the London Stock Exchange are being suspended, HMV said in a statement late on Monday.
Founded in 1921 HMV have struggled in the advent of the internet, failing to compete with online prices and illegal downloading of music.
The company’s troubles underline the gloom on the High Street and come after a string of high-profile failures, including the closure last week of camera retailer Jessops and the collapse of electrical goods chain Comet last year.
“The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect,” HMV said in a statement.
The statement continued that the board “understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business”.