HMV set to enter administration

Long-running High Street retailer intends to file notice to appoint administrators.
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Music, film and game retailer HMV has announced it intends to enter administration.

The retailer stocks various licensed product such as gifts, books and headphones, and previously told it wanted to become "the ultimate destination for licensed product".

It's set to appoint Deloitte to lead proceedings in a bid to save the High Street retailer and sell off parts of its business.

HMV's shares have been suspended on the stock market this morning. And shoppers will not be able to spend gift vouchers or spend in-store credit, reports MCV.

A statement read: "On December 13th, 2012, the company announced that as a result of current market trading conditions, the company faced material uncertainties and that it was probable that the group would not comply with its banking covenants at the end of January 2013.

"The company also stated that it was in discussions with its banks.

"Since that date, the company has continued the discussions with its banks and other key stakeholders to remedy the imminent covenant breach.

"However, 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.

"The directors of the company understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business."

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