HMV to shut 66 stores across UK and lose 930 staff

While new figures show the rise of digital

Administraters at HMV have announced that 66 stores will close across the country and 930 members of staff will be made redundant

The latest episode in the downward spiral of HMV is the announcement today that administraters will close 66 stores - including four in London and all five in Edinburgh - making 930 staff redundant.

After going into administration last month, it was only a matter of time before the axe fell on HMV. Deloitte has confirmed the closures will happen over the next two months. The administraters are also planning to sell HMV's flagship store on Oxford Street.

Last week, the official HMV Twitter account was taken over and used by staff at HMV HQ to live tweet their own firing. And, with the future of HMV uncertain - another 3,000 jobs are potentially at risk if the retail company can't be rescued.

"As part of our ongoing review of HMV's financial position, we have now completed a review of the store portfolio and have identified 66 loss-making stores for closure. This step has been taken in order to enhance the prospects of securing the business' future as a going concern," said joint administrator Nick Edwards.

Stream team

Plenty has been made of the damage done to HMV by the rise of digital music and online streaming services.

Figures released this week by the British Phonographic Industry (BPI) state that 1-in-5 of us now prefer to buy all our music digitally, rather than step over the threshold of an HMV and buy a physical CD.

Forget even buying music outright - according to the report, streaming services like Spotify are now worth £49 million to the record companies and grew by 60 per cent last year.

Given the popularity of streaming and buying music digitally, we here at (self-confessed streaming supremos) would have put the figure of digital converts much higher than the 20 per cent mentioned in the BPI report.

What are your thoughts on the digital/physical audio debate? Let us know either in the comments box below or on our Facebook page.

Source: BBC