HMV has called in administrators as they became the latest high street casualty – jeopardising hundreds of jobs in Manchester jobs across then stores within the region.
Talks with the banks over the weekend proved unsuccessful with the entertainment retailers failing to agree terms over their debt.
HMV’s 250 nationwide stores will be kept open by Deloitte as they asses their options and seek potential buyers to save more than 4,500 employees.
An official statement read: “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.
“In the circumstances therefore we intend to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect.
“We understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business.”
The chain have been struggling for over a year and have found it difficult to compete with an expanding download and online market.
HMV – whose first store opened in 1921 on Oxford Street London – have also revealed they will no longer be issuing or accepting gift vouchers.
Disgruntled shopper Stacey Gaughan said: “Feeling sorry for all those who got HMV vouchers for Christmas. They have had the money so should honour them, it’s akin to stealing.”
After poor Christmas sales, HMV announced a huge 25% sale sparking early fears that they were trying to quickly shift their stock.
Consumers have taken to Twitter to voice their sadness over the closure of the store that became a high street fixture.
Kayleigh Tanner said: “Really sad about HMV. Nowhere decent to buy DVDs on the high street now! Hope administrators don’t kill it off completely.”
Jake Hook said: “Sad day for the music industry as #HMV faces administration. This is what happens if you steal music. Where is the future of music?”
Last year Manchester Arndale’s HMV, formerly home of fellow entertainment group Zavvi, and Oldham’s Spindles’ store were forced to close due to poor sales.
With stores in Manchester city centre, Trafford Centre, Rochdale, Bury, Bolton and Wigan at risk of closure, hundreds of employees are facing redundancy.