HMV jobs at risk as administrator called in

Music and DVD chain HMV, which employs about 4,350 staff, including those at its store in the Rochdale Exchange Shopping Centre, has confirmed it will appoint an administrator, making it the latest High Street casualty.

Deloitte will run the 239-store chain while it assesses prospects for the business and seeks potential buyers.

Trading in HMV shares on the London Stock Exchange is being suspended, the company said in a statement.

Started in 1921, HMV became one of the biggest names on the High Street, but has struggled against online retailing.

In a statement late on Monday the company said: "The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection..."

The statement continued that the board "understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business".

The company has been in financial crisis for more than a year, and on 13 December warned that it faced a possible breach of bank loan agreements, sending its share price plummeting.

The retailer, whose first store was opened in London's Oxford Street in 1921, has faced intense competition from online retailers, digital downloads, and supermarkets in recent years.

As its debts mounted, HMV sold off parts of the business, notably its live entertainment arm and the Waterstones book chain.

Last week, HMV announced a month-long sale with 25% off prices, sparking worries that the company needed to shift stock after poor Christmas trading. The Financial Times reported that the final straw came over the past few days when suppliers, including music labels and film companies, declined to help HMV with funding so that it could continue trading.

The company's troubles underline the gloom on the High Street and come after a string of high-profile failures, including the closure last week of camera retailer Jessops and Comet's collapse last year.