HMV Irish stores shut permanently by receiver

DUBLIN Tue Feb 12, 2013 3:40pm GMT

The logo of British music retail chain HMV is seen lit above its branch on Oxford Street in London January 14, 2013. REUTERS/Chris Helgren

The logo of British music retail chain HMV is seen lit above its branch on Oxford Street in London January 14, 2013.

Credit: Reuters/Chris Helgren

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DUBLIN (Reuters) - The receiver at HMVHMV.F, the music and video retailer, permanently shut the group's 16 loss-making Irish stores on Tuesday because of a lack of interest from possible buyers.

All 300 staff at the group's Irish operation will now be made redundant, having been temporarily laid off on January 16 when the company went into receivership in Ireland, the day after HMV sought protection from creditors in Britain.

Unlike administration, known as examinership in Ireland, receivership is not aimed at keeping the company operating as a going concern.

"The marketplace is very difficult given competition from web-based retailers and digital downloads, compounded by a number of other factors including high levels of rent," Deloitte, the Irish receiver, said in a statement.

"All stores were loss making and it was not possible to attract a purchaser," Deloitte said.

Some 66 HMV stores are set to close in the next two months as Deloitte tries to salvage some that have remained open in Britain.

(Reporting by Stephen Mangan; Editing by Greg Mahlich)

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