HMV set to go into administration

DARK-KNIGHT

I gave up hope last week tbh.. Another lesson learned ie don't give loans to companies like HMV for them to bow out stick fingers up at you and tell you sorry we ain't gonna give you your money back...

Can't see uk stores touching them. And who is gonna waste money heading up there to be further embarrassed at the point of sale by HMV...

Zeouterlimits

Oafley Jones wrote: »

You know one aspect of this that hasn't been touched on, and given that this is the gaming forum, is that it's going to be an absolute pain in the hole when the new consoles launch. Since the introduction of the last gen we've lost Virgin/Zavvi, Game and potentially now HMV. Cork city Xtra-visions are all gone as far as I'm aware. That's a huge chunk of retail capacity. We're left with Gamestop (which I've always hated), Tesco, Argos and the likes of Harvey Norman. It'll be a disaster.

Thinking of it from a console hardware or software publisher perspective, it's bad news for the Irish (and UK) market.
I worry about the market will treated release-wise, if not a severe contraction that could happen the console industry this generation.

Beefy78

andrewdeerpark wrote: »

Breaking news HMV UK stores are accepting vouchers from tuesday:

http://www.bbc.co.uk/news/business-21118711

What is the story with the Irish operation is it closed for good? Could you travel to the north or England with Irish vouchers? Is their any hope on the Irish Voucher situation?

The Irish vouchers were never redeemable in UK stores so they certainly won't be now.

andrewdeerpark

Can anyone confirm is the Irish operation permanently closed and are all the shops destocked, keys handed back to the landlords, or are the doors just shut with all shops as they were on the day they shut?

The Freeman

andrewdeerpark wrote: »

Can anyone confirm is the Irish operation permanently closed and are all the shops destocked, keys handed back to the landlords, or are the doors just shut with all shops as they were on the day they shut?

They are in liquidation which mens they are proper gone for good. English hmv is in administration which means they can still trade.
2 separate entities dude.

Deano7788

The Freeman wrote: »

They are in liquidation which mens they are proper gone for good. English hmv is in administration which means they can still trade.
2 separate entities dude.

They're in receivership, not liquidation yet, so there's still a slim chance they'll survive. They're not going to accept vouchers and are remaining closed though.

http://www.rte.ie/news/2013/0121/hmv-vouchers-administrators-receivers.html

The Freeman

Deano7788 wrote: »

They're in receivership, not liquidation yet, so there's still a slim chance they'll survive. They're not going to accept vouchers and are remaining closed though.

http://www.rte.ie/news/2013/0121/hmv-vouchers-administrators-receivers.html

My apologies good sir. Correct;)

bad form they won't allow us the option of popping up north and using our vouchers. But sure why would they give a hoot about the Irish small market . they'll take the hit on the pr side over here,and it'll be overshadowed over in the UK with,their good news on the vouchers.
Another score for the cooperations.

Beefy78

If the Irish business was profitable then it would be surviving.

Pacing Mule

Beefy78 wrote: »

If the Irish business was profitable then it would be surviving.

Yes HMV made a loss here last year.

However for me the question is would it be profitable if the prices were not as slashed as they had been in recent times ? Would they still get the volume of sales with a 5-10% price increase ? (Losses were approx 3.5% of turnover) And would that volume be sustainable as digital distribution gets embedded further ? I actually suspect the operations here could indeed be profitable but it would take a group with local market knowledge to make it so.

cloud493

Guess I'm doing all my game shopping up north/ on amazon now

Beefy78

Pageant Messiah wrote: »

Yes HMV made a loss here last year.

However for me the question is would it be profitable if the prices were not as slashed as they had been in recent times ? Would they still get the volume of sales with a 5-10% price increase ? (Losses were approx 3.5% of turnover) And would that volume be sustainable as digital distribution gets embedded further ? I actually suspect the operations here could indeed be profitable but it would take a group with local market knowledge to make it so.

Surely HMV's Irish business did have local market knowledge? They were run as different businesses.

Asmodean

Apparently Hilco, who bought out HMV in Canada are stepping in to buy up their remaining debt. Still no verification as to the future of the irish stores.
http://www.computerandvideogames.com/387624/hilco-poised-to-acquire-hmv-after-debt-buyout/

Asmodean

Asmodean wrote: »

Apparently Hilco, who bought out HMV in Canada are stepping in to buy up their remaining debt. Still no verification as to the future of the irish stores.
http://www.computerandvideogames.com/387624/hilco-poised-to-acquire-hmv-after-debt-buyout/

Financial Times and Sky News confirmed that Hilco have taken ln HMV's debt so its looking good for the UK stores. Sadly the Irish stores are likely to stay closed.

Asmodean

Damn

They really were doing that badly here so? I reckon the store here in Galway was doing okay but that doesn't matter I guess if the chain as a whole is gone tits up.

Asmodean

Asmodean wrote: »

Damn

They really were doing that badly here so? I reckon the store here in Galway was doing okay but that doesn't matter I guess if the chain as a whole is gone tits up.

Much like in the UK many of the stores here did well and turned a profit but the loss making stores lost so much that it negated any profits from others.

Really is a shame to see the Irish stores remain closed. There is absolutely nowhere now that has a decent selection at a good price.

cloud493

Gamestop are so rubbish. Looks like it's the north/amazon shopping only for me now

Pacing Mule

Beefy78 wrote: »

Surely HMV's Irish business did have local market knowledge? They were run as different businesses.

Not quite. They were still ran on the same strategy as the UK. The over riding strategy was to try and maintain turnover / cash flow with profit making a distant second.

Taking games as an example because I know the market well. HMV consistently sold games here at too close to if not under cost price. Taking Blanchardstown centre as an example on a day 1 release HMV could be up to €10 cheaper than the nearest competition. At one point that was against 4 other retailers. Now that €10 would be coming at an eventual loss to HMV. So why not price it €5.00 cheaper - still be the go to store for cheaper games at bricks and mortar level but make a bit of profit that might actually pay the running costs of the business ? Likewise consoles I've seen them taking a €50 loss per console on some deals before Christmas.

An international business like hilco taking over HMV as a whole will see the Irish operation as a loss making entity a small fraction of the company, requiring its own office infrastructure etc. At first glance it's a no brainer to leave it shut but the figures don't tell the whole story.

Red Crow

Jesus that's some kick it the teeth for the market here.

Clover

Pageant Messiah wrote: »

Taking Blanchardstown centre as an example on a day 1 release HMV could be up to €10 cheaper than the nearest competition. At one point that was against 4 other retailers.

That was the case with most day one releases alright , I remember one day the difference was €20 on a release day game between the highest and lowest price in the four stores :eek:.

The only one still open is Gamestop.

Beefy78

So my friend has some old paper vouchers in Euro denominations. However unlike the cards which the small print says are only for use in the Republic, the samm print on the back of these say that they can be used in any store in Ireland or the UK. Has anyone heard of these paper vouchers being honoured in Northern Ireland?

degrassinoel

just heard HMV are set to reopen again, and take on another hundred people across the country

cherryghost

Source?

degrassinoel

http://www.independent.ie/business/irish/hmv-stores-set-to-reopen-with-4m-investment-and-100-jobs-29330834.html

shops on Dublin's Henry Street, at Liffey Valley, Dundrum Centre and in the Crescent Shopping Centre in Limerick will roll up the shutters soon. A fifth outlet is likely to be added over summer and several more are on the target list, including a return to somewhere on Grafton Street.

Recruitment of around 100 staff will start rolling out in the coming week.

It is said that between €3.5m and €4m will be invested in start-up and stock.

Happy days, i wonder will the old staff get their jobs back as well as the extra 100 employees countywide?

DarkJager

cherryghost wrote: »

Source?

http://www.independent.ie/business/irish/hmv-stores-set-to-reopen-with-4m-investment-and-100-jobs-29330834.html

Recovery specialist Hilco will open several HMV stores within weeks.

Shops on Dublin's Henry Street, at Liffey Valley, Dundrum Centre and in the Crescent Shopping Centre in Limerick will roll up the shutters soon. A fifth outlet is likely to be added over summer and several more are on the target list, including a return to somewhere on Grafton Street.

Recruitment of around 100 staff will start rolling out in the coming week

jasonbourne.cs

im guessing outstanding HMV vouchers will not be honored .... :rolleyes:

DarkJager

jasonbourne.cs wrote: »

im guessing outstanding HMV vouchers will not be honored .... :rolleyes:

Nothing mentioned about it. Great news anyway, I can stop having to visit gamestop again

degrassinoel

jasonbourne.cs wrote: »

im guessing outstanding HMV vouchers will not be honored .... :rolleyes:

Hilco are the new masters, so it'd be up to them. Personally i'd say it'd be good business to honour the vouchers.

jasonbourne.cs

would go a long way to building some consumer trust back up

Mr.Saturn

I wouldn't celebrate just yet, part of Hilco's successful restructuring of HMV Canada was getting rid of games. They've also gone on record about their plans for their UK shops, saying that the focus is primarily on DVDs and music.

http://www.techradar.com/news/world-of-tech/hmv-lives-music-shop-saved-by-plan-to-bail-out-of-gadgets-1142740

http://www.independent.co.uk/news/business/news/no-tablets-more-music-and-film-hilcos-vision-to-resurrect-hmv-8562737.html

The restructuring firm yesterday ended months of speculation by acquiring the HMV brand, website and 141 stores in a deal worth about £50m, and promptly vowed to restore the retailer to its heritage as a music and film specialist.

degrassinoel

even if they do that, it's still a big boon to have a lot of people back in work and able to afford to buy games again