More HMV stores predicted to shut during administration

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Page last updated at 06:02 GMT, Monday, 18 February 2013

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By Steve Holden
Newsbeat reporter

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24-year-old Simon Wilson has around 1,000 CDs and DVDs

The trade body which represents the UK's DVD and CD retailers has predicted more HMV stores will close.

However, the Entertainment Retailers Association (ERA) hopes the chain will survive on the High Street as a "slimmer and leaner" organisation.

HMV has been in administration since collapsing in January, putting thousands of jobs at risk.

Administrators Deloitte have already announced 66 of HMV's 220 stores across the UK will shut within weeks.

ERA's Director General Kim Bayley said: "I think there will definitely be more HMV closures over and above the 66 that have already been announced.

"I think everyone in the industry hopes they come through the other side and with a slimmer, and leaner organisation, they can still make a high street presence work."

Buying CDs and DVDs Kim Bayley, Director General of the Entertainment Retailers Association

Kim Bayley represents entertainment retailers

HMV is one of the last specialist music and film retailers on the High Street but has faced online competition in the face of falling sales.

Last month, trade body the British Phonographic Industry (BPI) said almost one in five consumers now preferred to buy all their music as downloads.

ERA is adamant customers still want physical products though.

"They want to go to stores such as HMV," said Kim Bayley. "We're in danger of having a High Street with fewer outlets selling CDs and DVD and therefore you disenfranchise lots of customers.

"As a trade association, all of our members, including digital members, realise HMV has a very important role to play in the CD and DVD eco-system."

66 of HMV's 220 stores are to close permanently so far.

So far, 66 of HMV's 220 stores will close permanently

With his collection of around 1,000 albums, movies and TV box sets, 24-year-old Simon Wilson agrees with that sentiment.

He said: "The artwork and the book and everything that goes with it, that's what makes the album, so why not have it?

"That's how they (the bands) wanted you to have it. They didn't make it just for you to download and listen to. They wanted you to own it and hold it and feel it."

In January, restructuring specialist Hilco bought HMV's debt, giving it a say in the future of the chain.

In February, administrators secured a deal for HMV stores to be supplied with new stock.