Major film and music studios club together to try and save HMV
Update 21.01.13
HMV will start accepting gift vouchers again from Tuesday, January 22nd administrator Deloitte has confirmed. Previously it had said that gift cards could not be redeemed in store.
Given that many people received HMV vouchers for Christmas, that's good news. Deloitte says it can now honour the vouchers after assessing HMV's financial position.
Published 20.01.13
The threat of cut-throat pricing by internet retailers and supermarkets has led the world's biggest music labels and film studios to put together a rescue package to save troubled retailer HMV, reports The Sunday Times.
They fear domination of music and film distribution by the likes of Amazon, Tesco and iTunes if HMV goes under.
Universal Music, Warner Music and Sony are set to cut the price of CDs and DVDs, and give HMV generous credit terms in a last-ditch attempt to save the High Street chain. The rescue bid is also expected to get backing from 20th Century Fox, Universal Studios and Warner Bros.
Although it is now in the hands of administrators Deloitte, HMV still accounts for one fifth of DVD and music sales in the UK.
According to The Sunday Times, investment company Hilco, which specialises in saving struggling retailers such as Habitat, is the preferred bidder for HMV.
Deloitte has already said it is "actively seeking a purchaser for the business and its assets”.
Should HMV be saved? Let us know what you think in the Comments box below.
via The Sunday Times
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Comments
I wish they were as bothered about Blockbuster.
If we want HMV to survive, which I personally do, then we should expect to dig a little deeper into our pockets and buy on the high street and not pass our money across to the likes of Amazon, when we know where that money ends up. Embrace the last of the music shop culture on our high streets (Not forgetting the independant retailers) and ensure they stay in business.
Hey, where else can a man seek sanctuary, when his wife is in the shoe shop?
I agree with Crang.
Stick and prioritise to the main selling strengths which have to be cd's, blu ray's and dvd's.
And they shot themselves in the foot when they got rid of the areas to actually listen to albums you would potentially buy and yet you get all the kids in there listening to their own music for hours on end using their headphone stands ? They should have just intergrated the two ideas.
It's a sad situation though and I feel for all there staff, lets hope a deal can be done.
Get rid of other products! Stick to Cd DVD. Bluray etc get booths back in for listening then it may work!
Lets just hope they can be saved!
An iconic brand, that goes back forever.
I was sad when woolworths went under. Grew up with these guys. Its a bloodbath on the high street, when will it all end?
The question remains as to whether HMV will use some common sense and use these price cuts to reduce the prices to the public and therefore entice them to spend, or will they as I cynically think use them to merely increase the profit margins!
If they can make it work great!
Yeah, why not.