HMV calls in administrators as latest victim of digital era
91 year old UK music retailer is last major store to close after a decade of declining sales
The rapid decline in physical sales of music has led to one of Britain’s most well known retail brands appointing administrators yesterday, representing the last major seller of music and film disappearing from the UK’s high-streets.
After months of speculation and a freefalling share price, HMV announced last night that it “has been unable to reach a position where it feels able to continue to trade outside of insolvency protection.”
Many music retailers have struggled in the last decade to offer customers a service to rival the convenience of online challengers like Amazon and digital music providers, such as Apple’s iTunes store.
The UK market has been badly hit, with firms including Woolworths and Zavvi failing in recent years, while the US has seen recognisable brands like Tower Records disappear.
Speaking to the BBC, Neil Saunders, managing director of retail analyst Conlumino, said the news was “inevitable”, adding: “In the digital era, where 73.4 percent of music and film are online, HMV’s business model has simply become increasingly irrelevant and unsustainable.”
While HMV attempted to stave off the decline in music sales by diversifying into other areas, such as books and technology, it was unable to compete with consumers appetite for digital content.
