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Sunderland’s HMV store escapes the axe again

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SUNDERLAND’S HMV store has escaped the axe for a second time - but more than 30 of the firm’s stores across the country will close.

Another 464 jobs face the axe at the music chain after administrator Deloitte announced the closure of a further 37 stores including those at Silverlink, in North Tyneside, and Middlesbrough.

The Sunderland store in The Bridges will however remain open, saving the jobs of Wearside retail workers.

The 92-year-old company collapsed last month after an attempt to arrange a £300million financing deal to pay off its bank debt and fund an overhaul of its business model failed.

Deloitte said last week that sale discussions were “progressing” as it also announced it had secured stock from most of its suppliers that will see it continue to sell the latest film and music releases.

Stores in Durham city centre and South Shields went to the wall in the first round of closures.

Administrator Deloitte said the stores would close over the next four to six weeks and would probably lead to all affected staff being made redundant, although it would try to relocate employees to other stores where possible.

The decision will leave around 116 stores in the HMV chain, after Deloitte said 66 stores would close earlier this month, affecting nearly 1,000 staff.

Nick Edwards, joint administrator at Deloitte, said the decision to shut the stores was made to “enhance the prospects of the restructured business continuing as a going concern”.

Mr Edwards added: “We are extremely grateful to the staff for their continued strong support and commitment during an understandably difficult period.

“All other key stakeholders including suppliers and landlords remain supportive and we appreciate their ongoing assistance.”

Restructuring firm Hilco - the group behind HMV Canada - has already bought the company’s debt in a move that has raised hopes of a rescue deal.

HMV had more than 220 stores and 4,120 staff when it ran into trouble at the start of this year after failing to keep pace with internet rivals and supermarket chains, whose scale has enabled them to offer CDs and DVDs at cheaper prices.

Twitter: @davidallison88

 

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