After one of the most popular international locations of Virgin Megastore filed for bankruptcy last week, another European-based music retailer is following suit. British retail chain HMV has entered the country’s equivalent of the bankruptcy process to help resolve its financial troubles.
Meager Music Sales
Financial troubles have extended around the globe, as the economy pressures consumerism and technology drives retail chains into fierce competition. Despite a significant boost in holiday sales last month, HMV continue to struggle against the tide for profitability. After intense negotiations and numerous failed attempts at ironing out debt troubles with creditors, HMV’s outstanding debts lead to company shares being suspended from the London Stock Exchange.
Operating some 240 locations around the world and employing more than 4,000 people, HMV announced last week that it filed for administration; Britain’s equivalent of the U.S. Chapter 11 bankruptcy process. Already carrying 10 vacant locations in Britain alone, the company is hoping that the stricter guidance found in the administration process will be able to save the future of the company and the jobs of thousands of employees.