HMV Group PLC (03412290): administration
- Status
- Administration ended
- Administration began
- 2013-01-15
- Administrators' firm
- Deloitte
- Formerly
- HMV Media Group PLC; Doublecapital Public Limited Company
- Incorporated
- 1997-07-31
- Location
- London
- Industry
- 47789 Other retail sale of new goods in specialised stores (not commercial art galleries and opticians)
Why it went into administration
- Weak consumer demand
- Funding withdrawn / unable to refinance
- Sustained trading losses
From the administrators' statement
Events pnor to the administrations
In addition to wider economic factors, including pressure on consumers’ discretionary spending, as noted above there had been a shift from consumers purchasing physica! products (primarily CDs and DVDs) towards purchasing media in a digital format The Group’s attempts to off-set the effect of declining revenues through diversification into other markets (technology, games and live music) were not producing sufficient benefit in the time required and, as a result, the Group undertook a series of disposal transactions {as detailed in section 1 2), In order to return to a focus on the core business and seek to alleviate the Group's debt burden
In early December 2012, the Group announced that as a result of adverse trading conditions, it faced material uncertainty in respect of its future and it was probable that it would not comply with its banking covenants at the end of January 2013 Between then and 14 January 2013, the Group continued in discussions with its key stakeholders (suppliers and the Previous Lender Group) to seek to both remedy the covenant breach and secure funding of a potential! new money requirement in 2013
Administrators' statement of proposals (2013-03-13) · Companies House register