Deathwatch: HMV group to close 60 stores as sales slump
Fears are growing that the axe of doom could be hanging over HMV, that high street veteran of the sale of records, tapes, compact discs and lately, other assorted tat.
They’ve announced plans to permanently pull the shutters down on 40 of their stores over the coming year as they try to tackle plummeting sales, thin and weedy profits and bank loan difficulties.
HMV’s sales at Christmas were down by 10% and the company have issued a profit warning, leading to a 24% drop in the share price. Blame for the sales slump has been attributed to the crappy weather and ‘challenging trading conditions’. Worryingly, the share price has seen a cumulative fall of 78% over the last 13 months.
Waterstone's, also part of the HMV group, has confirmed that 20 of its book stores will all close over the next twelve months. In total the HMV group has 285 HMV shops and 312 Waterstone's stores.
Other cost-cutting measures are planned within the company that they hope will save another £10m per year. But will it be enough? Will HMV go the same way as Our Price and will Nipper the dog end up with a needle in his neck (and we’re not talking about the one from the gramophone)?