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You won't get this on Amazon: Fans queue to see Viva Brother at HMV at the Oracle
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HMV calls in the administrators

January 15, 2013

Music and film chain HMV has announced it is calling in the administrators, putting about 4,500 jobs in doubt.

The company's 239 stores, including one in The Oracle and one in Charles Square in Bracknell, will continue trading while potential buyers are sought.

However, the shops will not be accepting or issuing gift vouchers.

The 90-year-old chain has struggled against the growing popularity of downloading music and films and competition from supermarkets.

A statement by the company said: "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 news comes just a week after camera retailer Jessops closed down and follows the collapse of electrical goods store Comet last year.

At one point, Reading had a second HMV store in Friar Street as well as a Virgin Megastore, in St Mary's Butts and Fopp, in West Street.

The Oracle HMV is now the town's sole surviving dedicated music and film retailer apart from charity and second-hand stores.

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Good, I'm glad it's gone. So many independent music outlets died for HMV.

#supportyourlocalrecordstore

Dog Leg
15/01/2013 at 12:09

On the bright side, there is probably going to be an epic sale on there soon. If only I hadn't blown on my money buying cut price goods at Comet and Jessops...

Hugh J, Reading
15/01/2013 at 11:56

@The Masked Avenger, The Bat Cave. Forgive my nitpicking, but Batman is "The Caped Crusader" - just saying ;)

Bruce Wayne
15/01/2013 at 11:51

Shops eh? Use them or lose them folks.

Millicent Reeves, Charvil
15/01/2013 at 11:50

Buck,

You could be very much correct in that WH Smiths could be next.

I can give you a snapshot of a recent experience that happened to me. I was in Harrods, and one of their concessions happens to be a WH Smith bookshop. Previously, it was a better-ran, better-quality Waterstones.

I had some Christmas gifts, and decided to look around for books. Anyway, I asked if they had the best-selling Life of Pi, and was told "We don't stock it". I also enquired as to Periodic Tales, and again I was told we're out of it. Finally, I enquired as to Will Gompertz's What Are You Looking At, and it, too, was not stocked.

There were, however, vast unsold copies of Victoria Pendleton's autobiography, and a biography of Cheryl Cole, which buyers and retailers assume people will purchase.

It also caught my eye, too, that Homer's Iliad was placed in History and not Poetry, or literature.

WH Smiths, in my opinion, do very well in magazines and newspapers, but you can subscribe to buy your magazines, and get them delivered prior to WH Smiths' due date, get online versions, and get Iphone and tablet versions too via applications.

Newspapers, such as the Guardian, Telegraph, Independent, are available for free online. You can also subscribe for The Times and Sunday Times, so Smiths could be next.

THOMAS CASAGRANDA
15/01/2013 at 11:43

They should have put a nail bar in, overpriced coffee, phone unlocking and a tattooist. 21st century shops which are all worthless.

John Steed
15/01/2013 at 11:38

Danny0367 - sadly it is the reality that HMV have no money. Anyone with gift cards are unsecured creditors and go to the back of the queue when any available money gets allocated. It may seem harsh, but it is just bad luck and when the business is struggling so much they can't just give away stock for nothing, although the gift card has already been paid for.

I hope some stores will remain, as I think most of us like browsing music and dvd's in a shop. The question will be how low they can cut prices to at least break even. The overheads of running big stores in town centres must be massive, which will always be tough to deal with when all we want is the best available deal.

Smiffy, Reading
15/01/2013 at 11:32

100% right there Atomic Tom and also Danny0367.

The smart money is on losing WHSMITHs next so start using those gift vouchers folks.

Buck, Reading
15/01/2013 at 11:30

Atomic,

There's no surprise to this.

Certain albums that fall out of the Top 40 spectrum are terribly priced by HMV. Charging nigh on £30 for imports of Buddy Guy and BB King is obscene, and HMV have hoisted themselves with their own petards. These are albums you could even get cheaper via download, or Amazon, or Play, or even an independent blues specialist like Red Lick in Wales.

I know that George Osborne closed the loophole on Indigo Starfish, an offshore, Jersey-based company that Amazon used for even cheaper CDs and DVDs, but it really wasn't enough, and HMV, like Cnut, were standing against an overwhelming tide.

THOMAS CASAGRANDA
15/01/2013 at 11:30

As my alter ego Bruce Wayne so rightly states, they were too greedy - perfect example is when I was browsing in HMV last week their sale DVDs were more expensive than normal priced DVDs on Amazon. I know they have overheads but a sale is a sale and prices should be competitively reduced accordingly. I also agree with Danny0367 in that many vouchers would be for kids for Christmas so it is unfair that they are not prepared to honour them.

The Masked Avenger, The Bat Cave
15/01/2013 at 11:24

I don't understand how anyone can be surprised by this... if i find a pair of headphones on Amazon for £20 and the same pair are in HMV for £40 where am I going to buy them? It's simple maths.

Growing up as a young teenager in Reading I remember a new music album costing between £12-£15 at HMV or Virgin. You'd be silly to pay that price today let alone 10/15 years ago. Yes it's a shame that a part of our high street is vanishing, but by ripping us off for so long they've written their own downfall and practically pushed us towards the likes of Amazon and Play.com. I just feel sorry for the average HMV shop floor worker of about 4,000 look likely to be made unemployed.

Atomic Tom
15/01/2013 at 11:21

Used to love buying vinyl in there years ago when i first bought my decks, they used to have a decent collection. Then it faded out so started getting it online and so did most other people. The same happened with CD's, DVD's and all products they sold - lost out to the online revolution! So it was sort of inevitable they would fade out. RIP HMV!

Mampi Swift, Reading
15/01/2013 at 11:19

Not honouring gift cards is very unfair. Especially as some people might still have them to spend as christmas presents.

Danny0367, Chorley, Lancashire
15/01/2013 at 11:07

What a great shame, HMV has been a great institution in the music industry for many years now. After Ourprice and Virgin collapsed I thought HMV would remain standing as the dominant high street music retailer, but as it has been said below they were never going to be able to compete with the likes of Play and Amazon due to all the overheads of running a large high street shop, as well as illegal downloading which was the final nail in the coffin.

I have never agreed with their prices compared to other retailer online prices, although I will miss being able to go into HMV to look around and pick things up, which helps me make a desicion as to what to buy elsewhere. I do hope they don't close but I think there has been a death sentance on this company for a while now which has been inevitable.

So what will be in the place of our HMV in the Oracle? A pound shop, a discount clothes shop...or yet another Tescos? Please have mercy...

Hugh J, Reading
15/01/2013 at 10:10

Ah, memories. The Friar Street store was as much a required visit for the young Spiddly, as was the neighbouring Friar Street Bookshop.

Now all we have are the betting shops, with their faint aroma of urine and agitated looking punters. Thanks, RBC Planning Committee.

Anyway, back on track. Pricing aside, a trip to HMV these days is just an overwhelming assault on the senses. It's like they're trying to simultaneously pull customers in all directions, there just doesn't seem to be any planning involved. Possibly down to constraints in floor space and making do with the best you've got, but I do think it could be better managed.

Would be a shame to see HMV go, hoping that some deal can be made to save it.

Spiddly, Reading
15/01/2013 at 10:01

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HMV calls in the administrators

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