HMV about to go into administration again

Discussion in 'Moopy Moop' started by Sheena, Dec 28, 2018.

  1. octophone

    octophone a wonderful wooden reason

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    I have fond memories of New Release Monday as well. My nearest shop in the mid 90's was Missing, followed by Tower and Fopp but if I wanted singles I was best off walking further onto Argyle Street with the HMV and Virgin right next to each other.

    So many options, so much choice. As sales buckled, the choice narrowed and as the choice narrowed and everyone was fighting over the same slice of pie, shops began to close.
     
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  2. octophone

    octophone a wonderful wooden reason

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    I actually remember the first time I realised we were in trouble. It was 2003 and I'd just bought "Phantom Power" by Super Furry Animals on the day of release. I was almost immediately chided by gggggg/Bunty's Magic Whatnot for being "late" because it "leaked weeks ago". I knew then that the internet had created a culture where everything had to be NOW, no waiting, no anticipation, no release dates just "fuck's sake, it's obviously finished just put it out NOWNOWNOW".

    And then, when Radiohead did pretty much exactly that with "In Rainbows" (the first album "drop" of the current culture, albeit before it accelerated to the sudden, instant version we have now), it was over for music retail, really.
     
  3. Sheena

    Sheena MAKE IT QUICK, LUCILLE!

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    :D
     
  4. Ellie

    Ellie Super talented triple threat

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    I left my Saturday job at Virgin Megastore in 2002. It was all downhill from there.
     
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  5. Shirley

    Shirley YOU CANNOT BE SERIOUS

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    Bloody Harpic Records letting us all down AGAIN. Could have single-handedly SAVED THE BUSINESS :(
     
  6. Ag

    Ag User

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    Gutted to see HMV Colchester closing. Since have a record player again, I popped in quite a bit. On and off there's been a music shop in some form in that corner of town, be it Virgin, Our Price and now HMV since the late 1980s.

    I really hope someone opens up a record shop in town, as there's just one vinyl trader in town on the market and while I've had some brilliant finds, it's not the same.
     
  7. Sheena

    Sheena MAKE IT QUICK, LUCILLE!

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    The problem with this is that it won't be a national, so it'll be indie and BORING REAL MUSIC focused. We have a record shop just around the corner from me, literally the next street and I NEVER go in, because I know there's never anything I'd remotely want, other than on Record Store Day. There is a REAL gap in the market if HMV disappears...
     
  8. Sheena

    Sheena MAKE IT QUICK, LUCILLE!

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    Anyway, I went in my local today and it was RAMMED. The guy behind the till said it was the busiest day they'd had in years and he hoped it was all one big marketing scam by the bosses as they haven't actually GONE into administration yet, just said they're close to it. I didn't have the heart to tell him...

    Anyway, the HMV Points question- they don't know when/ if the website will come up but people can still collect points. The £20 I converted from points into cash was totally ok, but if you haven't converted it yet, then it's a waiting game.

    And here is then the moan. Remember I said in my initial musings how I'd wanted the deluxe of the Lisa Stansfield album as it was £2.99 everywhere else and I'd been told "we do our own thing"? Literally HUNDREDS of copies of it at £2.99 today! Mostly on a shelf of sale CDs which weren't there on the 27th- so the second day (at least- did it actually start before Christmas?) of the sale. So fuck knows how many hardcores turned up, saw the sale was shit and left and how many opportunities were lost there.

    I ended up getting the aforementioned Lisa CD alongside All Saints' last album for a fiver and the Soft Cell "Tears and Keychains" boxset for £55, with another £20 off from my voucher, so essentially £35. Again, that (which is a really good deal at £25 cheaper than Amazon and £25 off their own standard price) was hidden in the racks on a "take me to the till card" with the boxset itself nowhere in sight. Utterly preposterous...
     
  9. jivafox

    jivafox Stay sexy don’t get murdered

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    I bought a bunch of DVDs (WORLD CINEMA of course) today at my local because I felt bad and it’s not even a potential closure :evil:
     
  10. Slave

    Slave User

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    I agree that there would be a gap in the market, but HMV have hardly been filling it.

    They’ve been chasing the “credible” market for ages. And whilst I acknowledge they have to do that to some extent in order to get people through the doors, I DO wonder whether they missed a trick by not pushing vinyls from Kylie, Madonna, etc - throw in some merchandise and sure, it wouldn’t have saved the business, but guaranteed they would shift the stock.

    God only knows how many Big Bang Theory doormats and t-shirts they have lying around in the stock room.
     
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  11. Sheena

    Sheena MAKE IT QUICK, LUCILLE!

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    But you can buy all that stuff there. The main vinyl display today had stuff from Spice Girls, Mariah Carey, Madonna on it, alongside newer releases. You won't get that in an independent store.

    Though, granted, this is where I feel the REAL issue lies.
     
  12. octophone

    octophone a wonderful wooden reason

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    Went in today. Busy for a Sunday, even in the holiday period, plenty of sales going through. The people chatting with the staff today were sympathetic, unlike that revolting vulture I had the misfortune to witness on Friday.

    Picked up 2 Kate Bush remasters at £6.99, Mitski's latest at £4.99 and Aretha Franklin's "The Atlantic Singles" for £4.99 but worth noting that all of these were restickered, rather than brought-in "sale" stock i.e. it's a genuine clearance.

    Fopp, therefore, doesn't have the same offers and had all 4 of those at normal full price. Picked up a couple of books and Bowie's "Blackstar" there. It was dead, compared to the HMV, normal for a Sunday.
     
  13. FetchFugly

    FetchFugly closing in again

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  14. lolly

    lolly Rowena? From Kuwait?

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    From music week

    Online discount club BuyVia has revealed it is in talks about a potential rescue of HMV.

    The music chain went into administration following a difficult trading period over Christmas. The latest BPI 2018 figures show a continued decline in physical sales, though HMV had been outperforming the market.

    Administrators KPMG are working on a potential sale of HMV.

    Now BuyVia, which helps users secure discounts for high street shopping, has made an early bid to take over the HMV brand and maintain some of the stores.

    A statement from BuyVia revealed it has drafted plans and is in talks with KPMG. The proposed takeover would see BuyVia saving a number of retail stores and using its digital expertise to overhaul HMV’s web store.

    HMV has seen strong growth in its online mail order service during 2018.

    "HMV has been a major player in the retail entertainment industry for nearly a century," said BuyVia representative Amy Jordan. "While the company has undeniably struggled in recent years, we here at BuyVia feel that plenty of progress can easily be achieved. We are now engaged in talks concerning how some of HMV's most significant retail presences could be saved from closing up shop forever. We also believe that BuyVia is perfectly positioned to turn HMV into a far more competitive and capable online retailer as well."

    ERA’s Kim Bayley has spoken about the importance of saving HMV for the biz.

    Turnaround specialist Hilco acquired HMV after it first went into administration in 2013.

    [​IMG] FOLLOW ANDRE PAINE
     
  15. FetchFugly

    FetchFugly closing in again

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    So it sounds like a limited number of shops and concentrating on online. At this point I guess that's probably as good as it is going to get to be fair...
     
  16. FetchFugly

    FetchFugly closing in again

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  17. octophone

    octophone a wonderful wooden reason

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    I was in on Saturday. Quite busy. A lot of vinyl on sale. The CD sale stock doesn't seem to have shifted that well. They still have calendars. £6.99 on the 12th January? Optimism is one thing, that's just daft.
     
  18. Ag

    Ag User

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    How are the Moopy funds looking?
     
  19. Star

    Star Homo Secretary (OB)

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    £564.96

    I can put an offer in.
     
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  20. octophone

    octophone a wonderful wooden reason

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    Cool. See if they'll give us just Fopp.
     
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  21. FetchFugly

    FetchFugly closing in again

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  22. Indie

    Indie Skeptopotamus

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    Mike Ashley to own everything please.
     
  23. Zu-Klara

    Zu-Klara User

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    Fopp only please. It must have been mentioned before but surely the thing which killed HMV was DOORMATS. I’d rather have a snapped Miquel Brown 12”. In fact I’d rather be DEAD
     
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  24. Star

    Star Homo Secretary (OB)

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    Fopp said no, but I've spoken to @Floppet and she says she'll be ours for a tenner.
     
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  25. octophone

    octophone a wonderful wooden reason

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    OK, let's get the contract finished before Mike Ashley makes a bid for her.
     
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  26. lolly

    lolly Rowena? From Kuwait?

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    Deal or no deal? HMV's fate to be decided in days ahead
    by Andre Paine
    February 1st 2019 at 2:04PM
    [​IMG]


    HMV’s fate is set to be decided in the days ahead and, like Brexit, all the talk is about deal or no deal.

    It’s been over a month since the last music chain went into administration and more than two weeks since the deadline passed for bids. With stores now getting low on stock of key releases, administrator KPMG will be reluctant to delay a decision any further and risk a drain on its own resources as music consumers look elsewhere and potentially lose faith in the HMV brand.

    Suppliers have been providing HMV with new releases on a case-by-case basis. So while many indies are holding back stock from HMV – often a vital outlet for their releases – Sony Music UK has ensured Bring Me The Horizon’s new album Amo is available, a decision that’s paid off in sales terms.

    Music Week has learned that a preferred bidder was set to be determined earlier this week, though the deal couldn’t cross the line. The physical entertainment retail sector had been primed for an announcement when KPMG’s rolling weekly arrangement with suppliers was up on Tuesday (January 29), but the administrator later secured another seven days to give the bidders another chance.

    With the clock ticking, HMV’s fate looks set to be decided on Tuesday (February 5) or even earlier.

    According to industry sources, the two leading bidders are High Street tycoon Mike Ashley and a management buyout led by HMV MD Neil Taylor. But Music Week understands there’s also a potential buyer in Canada’s Sunrise Records, which expanded from eight stores to around 80 when it acquired HMV Canada two years ago.

    KPMG has staged a “beauty parade” of bidders with music and movie suppliers. Both frontrunners would implement a restructuring programme and close unprofitable branches.

    While the 130-store chain has performed ahead of the market in physical music, it was hampered by expensive leases and crippling business rates in some sites. HMV sold 31% of all physical music in the UK in 2018 – worth around £118.8m – but a projected decline of 17% in physical entertainment sales this year revealed the extent of the challenge ahead

    Most suppliers are erring on the side of something new rather than more of the same

    Industry source

    While a management buyout would bring continuity, the industry might prefer the idea of Ashley trying to turn HMV around. He owns Sports Direct and has previously bailed out House Of Fraser and Evans Cycles.

    “I think most suppliers are erring on the side of something new rather than more of the same,” said one source. “But there are a lot of moving parts.”

    KPMG has been talking to around 20 key suppliers, but there are also dozens of landlords each with their own agenda. Ashley has reportedly been staging his own negotiations with landlords for a six-month rental holiday.

    If neither Ashley nor the current management secures a deal this week, then HMV could go into liquidation. But Music Week understands that Sunrise Records would at that point move to negotiate directly with landlords and suppliers, who would be seeking to secure the return of stock that had been supplied on consignment.

    While that might be late in the day for an audacious takeover, Sunrise Records could see an opportunity to establish its own brand name in the UK within weeks.

    Sunrise has not responded to requests for comment.

    “We are feeling more optimistic than we did,” said one source. “We know there are two main bidders, and in the event that isn’t successful there is someone [Sunrise] waiting in the wings.”

    The industry would mourn the loss of a popular High Street name if Sunrise did decide to launch in the UK. But Music Week understands that it’s the ownership of the HMV brand name that has complicated the acquisition process. While HMV Retail is in administration, HMV Brands Ltd – which controls the retailer’s name – is not. As a result, KPMG’s preferred bidder would need to acquire or license the brand name separately.

    HMV Brands' company directors are Henry Foster and Paul McGowan of turnaround specialist Hilco, which operated the chain for six years up to Christmas.

    Time is running out for HMV, which has already been in administration once before. One store, in Gloucester, has already announced its closure, according to local reports.

    Other rumoured interested parties include French retailer Fnac and Amazon, although no details of any firm bidder have been issued. Previous interest from discount group BuyVia collapsed when it transpired it had not actually been in touch with administrators.

    With the current problems at PledgeMusic, it’s not been a great start to the year for the physical music sector. ERA and the BPI have already led the calls for the chain to survive. While streaming may be the future, this week the biz will be united in hoping that the doors aren’t about to close for good on Britain’s last music chain.
     
    Last edited: Feb 1, 2019
  27. Slave

    Slave User

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    I have absolutely NO PROBLEM with someone buying it out and trying something completely new.

    In fact, I think it’s probably the only option. Carrying on down the same path with a new owner will just delay the inevitable.
     
  28. octophone

    octophone a wonderful wooden reason

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    Interesting...sure the "brand" is fucked if all the stores close? I can see where Sunrise are coming from - forget the expense of the name and go with something new.

    (I assume "Fopp" is owned by HMV Brands Ltd too....)
     
  29. lolly

    lolly Rowena? From Kuwait?

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    Doug Putman, owner of Sunrise Records and a self-confessed vinyl lover, has acquired HMV.

    The boss of the Canadian music chain has revealed he will keep 100 of the 127 stores open and maintain the HMV brand. Putman beat off rival bids from Mike Ashley and an HMV management team to secure control of the chain from KPMG.

    Music Week first revealed the audacious move by Putman to acquire HMV, which went into administration on December 28.

    The joint administrators of HMV have confirmed the sale of the businesses and assets to Sunrise Records & Entertainment Limited, whose shareholder is Doug Putman. It will keep 1,487 store and head office employees and stores will continue to trade as HMV, with four continuing to trade as Fopp. Twenty-seven stores have not been acquired, and will be closed with immediate effect, resulting in 455 redundancies.

    Putman, CEO of Sunrise Records, said: “We are delighted to acquire the most iconic music and entertainment business in the UK and add nearly 1,500 employees to our growing team. By catering to music and entertainment lovers, we are incredibly excited about the opportunity to engage customers with a diverse range of physical format content, and replicate our success in Canada.

    “We know the physical media business is here to stayand we greatly appreciate all the support from the suppliers, landlords, employees and most importantly our customers.”

    Just over two years ago, Putman took control of around 80 HMV Canada stores. But while they were rebranded to Sunrise Records, in the UK he will maintain the HMV brand.

    “We spent the last little while trying to negotiate a deal that made sense for everybody, keeping as many stores open and as many people employed as possible,” he told Radio 4’s Today. “We’ve been able to come up with a great deal that allows 100 of the stores to continue on.”

    He added: “We can confirm we are going to keep HMV, it’s just a fantastic heritage brand coming up shortly to the 100 year anniversary. It’s just so iconic, I feel really lucky to be able to say that we can continue to call it HMV.”
     
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  30. Slave

    Slave User

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    I’d take Sunrise Records over HMV.
     
  31. octophone

    octophone a wonderful wooden reason

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    I think this is a vastly better situation than if Mike Ashley had prevailed. The new owner is keen on giving stores autonomy to adapt to local markets and trends which seems to me to be more than just common sense but something so necessary for survival to make you wonder why they weren't operating like that already.

    No mention of Fopp. I worry that we're about to lose them. There's no list of closing stores yet.
     
  32. dmlaw

    dmlaw Democracy doesn't work

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    Lolly's post says that four stores will continue to trade as Fopp, although I don't think they have announced which stores it will be yet.
     
  33. octophone

    octophone a wonderful wooden reason

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    Oh, so it does. The BBC doesn't mention them.
     
  34. lolly

    lolly Rowena? From Kuwait?

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    How many stores do Fopp have? I know it's not THAT many, but only keeping four means they are losing a large proportion, doesn't it?

    We have a central Fopp, a central HMV and an out of town HMV. I'd selfishly prefer to lose the out of town HMV as I rarely go there, but I imagine it has relatively cheap rates.

    I worry that the Fopp store (which would be my preferred of the three) has been hit hardest by the Rough Trade branch we had open here a out a year ago.
     
  35. octophone

    octophone a wonderful wooden reason

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    They have 9, two of which are in Glasgow. One is quite close to the main HMV store, the other is out in the West End.
     
  36. lolly

    lolly Rowena? From Kuwait?

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    Didn't Fopp originate in Scotland, or did I make that up? I know the first one I ever went in was in Edinburgh.
     
  37. octophone

    octophone a wonderful wooden reason

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    No, you're right - in Glasgow. It was a small unit in the Savoy Centre called A1 Sounds, they moved out into a shop in Renfield Street and changed the name to Fopp. They opened in the West End of Glasgow but left the Glasgow town centre for several years as they moved into Scotland and then England...I think their first store in England was in Leamington Spa...
     
  38. octophone

    octophone a wonderful wooden reason

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    The Glasgow Byres Road store isn't open today. :(

    Twitter lists the following as closed: Fopp Oxford, HMV London - Oxford Street, Manchester Fopp, HMV Bristol - Cribbs Causeway, HMV Bath.
     
  39. octophone

    octophone a wonderful wooden reason

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    The other Fopp in Glasgow, on Union Street has been reported safe.
     
  40. Kalabaliken

    Kalabaliken Judging you in Google Translate

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    Oh that’s a shame that Byres Road is going. It’s the only record store for miles around there and there are so many students and affluent people that you’d think it would have done good business.
     

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