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HMV set to fall into administration tomorrow morning

Tim Ingham
HMV set to fall into administration tomorrow morning

Beleaguered retailer HMV looks set to go bust as early as tomorrow morning, after suppliers refused to hand the firm extra funds to pay off its banking debts.

The retailer is understood to have asked music, video games and movie suppliers for £300m in extra financing last week - a request that was ultimately turned down, despite reports of some funding coming its way.

An emergency HMV Board meeting which took place tonight is believed to have concluded that the firm has no other option than to fall into administration.

The signs were on the wall in December, when the HMV Group admitted it anticipated a “probable covenant breach" of its banking loans at the end of January 2013.

The firm's underlying net debt grew to £176.1m (2011: £163.7m) in the six months to the end of October 2012.

Deloitte has tonight been named as the most likely candidate to handle the company's administration.

An HMV spokesperson could not comment when contacted by Music Week tonight.

The chain employs around 4,000 workers and has 230 stores around the UK.

In what now looks like a last-gasp attempt to raise funds, HMV announced a 25% off Blue Cross sale shortly before the weekend.

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Tags: HMV, administration

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