HMV on the brink of collapse putting 2,200 jobs at risk

MUSIC retailer HMV is on the brink of collapse for the second time in six years.

Britain's biggest CD, DVD and games chain is set to fall into administration after the company filed a notice of intention last week, putting more than 2,200 jobs at risk.

HMV, which has 128 shops across the country and a website, was looking to appoint administrators last week, Sky News reports.

Sales were down by £23.6million in 2017 compared to the previous year, its latest report published in October revealed.

The music chain is the first victim of the struggling high street after Christmas.

The retailer has been in last-ditch talks with high-profile figures in the music industry to try and avoid collapse, according to Sky News.

The music chain first fell into administration in 2013.

It was bought by Hilco, which also owns Homebase, and the company acquired HMV's £50million debt.

After it bought the company, it relaunched its website five years ago to focus on growing online sales.

In October, HMV overtook Amazon as the biggest seller of physical music and bosses said its website was also competing with the online giant for vinyl sales and mail orders, according to Music Week.

But the group also reported a 22 per cent slump in physical album sales this year, and its profits slipped by £7million.

Sources say soaring business rates and high street leases have led to the company's dip in revenue and profits.

The near-collapse of HMV will be a blow to the music industry, which relies on the chain for sales of physical CDs, records, DVDs, and games.

It is the biggest entertainment retailer still on the high street, as companies lose sales to online giants such as Amazon and eBay.

Hilco is now looking to bring in audit, tax and advisory firm KPMG to handle HMV's administration, according to the Daily Telegraph.

KPMG and Hilco declined to comment.

The first HMV shop opened in 1921, taking its name and logo from the famous painting His Master’s Voice, by Francis Barraud, showing a dog named Nipper sat, ear cocked, listening to a phonograph.

You can find your nearest branch using its store finder tool.

The news comes after almost 20,000 shops and restaurants closed their doors and 148,132 jobs were wiped out in the past year, end of year figures compiled by the Centre for Retail Research show.

There were also dire warnings over poor November trading, raising fears a sub-par Christmas could push more chains into distress.