HMV on the brink of bankruptcy14 Jan 2013
Things aren’t looking good for the UK games business at retail.
According to numerous external , media outlet HMV is expected to announce the appointment of an administrator and enter bankruptcy proceedings either later today, or tomorrow. The retailer has been beset by financial troubles in recent months, and the latest move appears to be the result of a failed bid to secure an additional £300 million GBP from suppliers.
HMV would be the latest and largest casualty in a succession of UK high street failures, which include other game sellers like Zavvi and Gamestation. The company operates 239 stores and employs around 4,350 staff.
High street media retailers have found themselves unable to compete with British supermarkets (who sell media items at a loss to get people through the doors) and major online sellers (who, like Amazon, are able to run complex tax avoidance schemes by basing themselves offshore).
PC retail sales weren’t exactly healthy in the UK to begin with, so this is likely to be another nail in an already thoroughly sealed coffin.