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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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It's Deloitte, not Deloittes.

TilehurstSouthbank, Tilehurst, Reading
18/01/2013 at 09:22

@ Bruce Wayne - sorry but Bats had copyrighted The Caped Crusader so I had to improvise :)

The Masked Avenger, The Bat Cave
17/01/2013 at 11:31

Another interesting piece about Deloittes, is that they were both auditors and consultants on the Haringey Council Refresh project, when there surely was a conflict of interest.

However, to continue being critical of Deloittes, means that there could be a tendency to go off message.

I just hope the administration of HMV is in safe hands.

THOMAS CASAGRANDA
16/01/2013 at 15:29

Also, Maddie, if you go on www.taxresearch.org.uk you can see for your self the extent of Deloitte's support of the Conservative Party.

They show a shocking bias towards Cameron and Gideon.

Now, I wonder what accountancy firm handles Amazon.co.uk's affairs ?

THOMAS CASAGRANDA
16/01/2013 at 15:21

Agreed, Maddie.

Many years' ago, when I finished my Post Graduate degree, I applied for a job with Deloitte Touche, as they were.

They were impressed with the qualifications, and I had my suit on, ready for interview, when a call came through, an hour prior, saying that they had changed their minds.

They are a terrible firm of inefficient insolvency administrators, and a terrible set of accountants. You would have been in safer hands if a reputable firm, like Grant Thornton, Wilkins Kennedy, et al, dealt with HMV's administration.

THOMAS CASAGRANDA
16/01/2013 at 15:11

Well I had to interrupt my afternoon sherry - it seems Deloitte have a number of ex-civil servants and Tory connected spivs on their various boards.

Cams and Gideon shaft the country, send hordes of high street regulars to the wall - then chums from the Carlton hoover up the remnants into their wallets.

Maddie Vegas, Hanworth, Bracknell
16/01/2013 at 14:35

What comes first are the secured creditors: there'll be thousands of unsecured creditors, so people shouldn't hold their breath re: getting any recompense.

THOMAS CASAGRANDA
16/01/2013 at 13:16

The holder of a gift card is an unsecured creditor. I can understand people being a bit miffed that they will not be able to buy themselves a CD or a DVD box set, but reasonably, staff wages have to come first.

The holder of a gift card will be ranked the same as company that has supplied HMV goods. Given that the supplier could go under if not paid thereby causing more job losses, I would argue that gift cards should be ranked lower than that.

Hopefully HMV will come out of administration and people will be able to use gift cards in future... though they may have to travel a bit further to find a HMV store.

I did hear in the news that some stores continued to sell gift cards after it went into administration. I sincerely hope that is not true as that really is tantamount to theft.

Bemused, Reading
16/01/2013 at 12:40

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

Thats a bit rude. Glad i dont buy gift vouchers

Mother Superior, Reading
16/01/2013 at 11:45

@Maddie,

Thank you.

THOMAS CASAGRANDA
16/01/2013 at 08:33

Voiceoftreason,

There's no personal insults flung at me by a certain person.

To quote John Prine, a musician whom HMV have minimal stock of "It don't make much sense: that common sense don't make much sense anymore".

THOMAS CASAGRANDA
16/01/2013 at 08:19

Thomas and Maddie sitting in a tree, k I s s I n g (snigger). Actually it's quite nice to see gracious retreat than the usual fang bearing war :0)

voiceoftreason?
16/01/2013 at 07:29

Not at all Dearheart....

Maddie Vegas, Hanworth, Bracknell
15/01/2013 at 23:05

Sorry, Maddie.

I know: mea culpa, mea maxima culpa.

It's a great book, though.

THOMAS CASAGRANDA
15/01/2013 at 21:12

@THOMAS CASAGRANDA

The film version Life Of Pi is Ang Lee's cinematic adaptation of Yann Martel's 2002 Booker winner.

Not a tie-in, filmic or otherwise, as this would intimate that both were released simultaneously - ostensibly for the purposes of theatrical promotion.

If you must erroneously use such terminology as 'filmic' then you must expect all the ire that pedantry can muster.

Maddie Vegas, Hanworth, Bracknell
15/01/2013 at 20:32

Call me cynical (and appologies if already mentioned) but, (just like Zavvi did) why do they make the announcement just after christmas?

They (like Zavvi and Jessups) have allowed customers to purchase gift vouchers that they will never honour.

Surely, (like Zavvi and Jessups) this decision was on the cards more than a month ago?

Bordering on fraud

Crane God
15/01/2013 at 18:19

It's a shame, though, as right next door to HMV in Reading Oracle is Waterstones: the staff in Waterstones in the Oracle really know books. Their breadth of knowledge is excellent; be it one young lady that knows all about Frank Miller, Clive Barker, and Neil Gaiman graphic novels, the manager that knows about Breverton's Phantasmagoria: other staff that know about Piers Brendon's Eminent Elizabethans: Tom Holland, Mary Beard, and Robin Lane-Fox.

They also don't reek of the desperate "Can I Help you" phraseology, which HMV, nowadays, has.

THOMAS CASAGRANDA
15/01/2013 at 17:21

His Master's Voice don't have the right stock....or staff that know anything (about the products)of the section they're in. I always go to HMV first to buy something and 9/10 I have to go to Amazon, which is cheaper anyway.

Readinglocal
15/01/2013 at 17:08

I love the smell of a record, I'm not ashamed.

What also upset me with HMV is that they slowly fazed out knowledgable staff for shelf stackers.

They also made a pigs ear with that online music subscription a few years back. Cost a bomb & wasn't compatible with their biggest selling MP3 player, the iPod.

Big unit to fill in the Oracle. Fingers crossed for a roller disco.

Dog Leg
15/01/2013 at 17:06

Typo: "Redlick is". Mea culpa.

THOMAS CASAGRANDA
15/01/2013 at 16:54

I would also go so far to state that CD as a musical medium is still fairly buoyant.

The super deluxe reissues of Paul McCartney's Ram, The Jam's The Gift, Peter Gabriel's So, Pink Floyd's Wall and Dark Side of The Moon, Elvis Presley's Prince From Another Planet sell. Likewise, Ace continue to provide excellent Northern Soul, and Southern Soul from Muscle Shoals, Memphis, and New Orleans.

Also, limited edition specialist sites such as Rhinohandmade and Hip O Select, still sell CDs focussing on certain marginal artists, such as Leon Russell, Bobby Charles, and Tony Joe White.

Certain artists also sell music from their own websites, which also appeal to fans. A case in point being Dan Penn's Blue Light Lounge demos, John Martyn concerts, the Stonesarchive series, and even Van Morrison Live at Austin City Limits.

People still, if they wish to, buy CDs, so you cannot really blame Itunes. Fantastic shops like Sounds of The Universe in Soho put together excellent compilations of Soul, Blues, Jazz, Reggae, and even TV soundtracks. Redlick in Cardiff are an amazing blues specialist shop, and they are cheaper than HMV too, and that also includes postage and package.

THOMAS CASAGRANDA
15/01/2013 at 16:53

It should return to music.

It should have specialist sections, where staff know what they're selling, and not little sections. It became too broad a church, with even Haribo sweets sold in the place, and even Heat Magazine.

There was a time when you went into HMV, and you purchased Mojo, Uncut, and fanzines such as Now Dig This !, Shindig, Essence, Isis, John Bauldie's Telegraph, and imported editions of Downbeat. To have the fanzines for the music collector replaced by Heat was disgusting.

Likewise, you could, at some stage, buy Japanese imports of Herbie Hancock's Flood, limited editions of Percy Mayfield and Allen Toussaint recordings, but not now.

HMV also sold some wonderful Ace records reissues of Cajun and Zydeco at £9.99, but now they don't have any agreements with Ace, and the reissues are now £15.00 per CD.

It's no longer what it was, but hopefully Deloittes may remedy the situation, and, like Bemused correctly states, let it concentrate on music.

Reissues are still being sold on CD, so CD isn't dead.

THOMAS CASAGRANDA
15/01/2013 at 16:42

A small nostalgic part of me feels sorry for HMV (and very sorry for the staff), but it generally was a horrible experience shopping in HMV (noise, layout, selection etc). I hope the streamlined version will go back to focussing on music and service.

Bemused, Reading
15/01/2013 at 14:57

What I was stating, Hannibal Smith, was that, and I might not have strongly emphasised this, is that WH Smiths, in some respects, may be suffering due to inept buying strategies. The books that I was after were in the Sunday Times bestseller lists, and were recently reviewed. Life of PI is also, currently, a filmic tie-in. The girl in Harrods did feel that they had recently sacked their buyer due to ineptitude, and that it was shocking how currently reviewed books were not in store.

The other thing is that I did suggest that online subscriptions to newspapers, magazines, and periodicals, may have an adverse effect on WH Smith. However, good for WH Smith if they are making a profit in this trying time.

I think they will survive: they have successfully adapted to the E-Book with the Kobo.

THOMAS CASAGRANDA
15/01/2013 at 14:51

Dog Leg - I'm not really fussed how I aquire and play my music as long as I have it or it is available if I need it. I don't need to touch or smell it, but it's good to have it at a touch of a button and I can easily browse the artwork on itunes. As long as I keep my computer backed up my music won't scratch, skip, fade, or smash.

That said, before I embraced the digital revolution I was also a big fan of sound machine :)

Hugh J, Reading
15/01/2013 at 14:46

lol @ grotbag :)

Ms Take
15/01/2013 at 14:26

@Thomas Casagranda, are you for real?

WH Smith's 2012 accounts show they made £63 million profit on sales of £462 million, a third increase on top of strong growth in 2010 and 2011.

To suggest they are going down the tubes because they didn't stock a book you wanted is frankly bonkers

http://www.whsmithplc.co.uk/docs/reports/WHSmith_AR12.pdf

Back to the plot, I am sure HMV will survive in a much reduced format. As is often the case with failed businesses, they tried to diversify too much and didn't focus enough on their core product of music.

Had they been able to deliver that better as physical and digital products they wouldn't be in this predicament. I speak as a long time loyal customer and owner of 3,000+ CDs, every time I went in there lately I felt they were too busy trying to push gadgets, headphones, non-music books and packs of Haribo, and anything non-chart was significantly over-priced.

Hannibal Smith, surviving as a soldier of fortune in the RG4 underground
15/01/2013 at 14:24

Not fussed about smelling my music, personally.

grotbag
15/01/2013 at 14:11

@Daniel

'Who needs to buy music when it's immediately available online whenever you feel like listening?'

Because playing a file off a computer is a horrible way to consume music as a fan. Records smell, feel & play great.

Big ups to Jims Memorabilia shop in the arcade too, picked up a few bargains the other day. Tricky Disco on Warp Records, original sleeve, £5.

Dog Leg
15/01/2013 at 14:06

Another BRITISH institution gone the way of the dodo. Still I doubt it'll be missed by the influx of benefit rustling Bulgarians and Romanians come end of year. On a plus at least it gives the above digital diarists (above/below) something to comment on whilst giving "a life" the clear swerve eh?

The Scrounger
15/01/2013 at 14:06

@John Steed

Sound Machine in the arcade off Station Road stocks a good selection of dance music. I pick up a lot of promos in there for a £3 a pop.

Dog Leg
15/01/2013 at 14:02

@Tobo Smith . . . no great loss there.

BHS is dire and has been for years. Both product quality and product choice is dismal. Went in once looking for some baby stuff when the nippers were small; walked straight out. Pure rubbish.

HMV; whilst I'm sad to see the old brand go, and I will miss browsing DVDs and the odd impulse buy, it really is well past its sell by date. I also feel very sorry for the extremely smiley, friendly staff they have in there.

Common Cents, Reading
15/01/2013 at 13:57

BHS will be the next one to go if their Reading outlet is anything to by...

Tobo Smith
15/01/2013 at 13:46

I once saw Sir Bob Geldolf play live at the Friar St HMV!

EC1
15/01/2013 at 13:17

@GuyG

Yeah, you go into WH Smith's and it's always busy and there's always queues at the tills. I doubt that they're making HUGE profits, but I'll bet that they're at least breaking even.

Daniel in Reading
15/01/2013 at 13:07

HMV failed to evolve

NotJohn, Reading
15/01/2013 at 13:05

Apologies for my spelling :(

berbergirl, reading
15/01/2013 at 12:56

It's not surprising. They refused to change an outdated business model. The prices were far too high.

I haven't shopped there in well over a decade.

I'll cherish those memories of playing the original Gameboy in the basement of the branch opposite the Broad Street Mall though. That was my Saturday morning ritual before a trip to the Odeon cinema in cheapside.

choccielab
15/01/2013 at 12:54

Obviously a lot of people will lose their jobs which in this climet isn't good as lots of other people are out of work but being selfish I am upset about something else. Greap an epic sale! I have got a gift voucher that my friend got me for my Birthday that I can't even use! Totakl waste of money. So now what do I do?!

berbergirl, reading
15/01/2013 at 12:53

in regards to WH Smiths, i do not think they are next as the newspaper market is still a huge one in all honesty and WH Smith does most of the distribution for Fleet Street across the country (at least in this area from when i worked at ASDA lower earley doing the newspapers some years ago)

i would say that their retail model in the High Street might be vulnerable they have at least adapted reasonable to the digital market.

GuyG
15/01/2013 at 12:48

I can remember buying early cds of It's Only Rock n Roll, and Steel Wheels, by the Stones in Quicksilver. Back then, they were cheaper than HMV, too.

THOMAS CASAGRANDA
15/01/2013 at 12:43

Local record store. The one that sold dance music must have disappeared a decade ago, and the one at the top of the escalator (Quicksilvers)in The Butts, twenty years ago !!!!

John Steed
15/01/2013 at 12:38

Dog leg - I doubt many inependant record outlets predate HMV who were first founded in 1921.

Hugh J, Reading
15/01/2013 at 12:28

That's no good if you only have a CD player, Daniel.

Jellybeanz
15/01/2013 at 12:12

Also, forgot to mention that these days, you can play pretty much any song or album for free through streaming websites like Spotify or Grooveshark. Who needs to buy music when it's immediately available online whenever you feel like listening?

Daniel in Reading
15/01/2013 at 12:10

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

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