HMV, the troubled high-street music and technology store has today posted yet another annual loss of £38.6m in the 12 months to the end of April. Like for like sales were down a substantial 12.1%. These results conclude what has been a terrible year for the company.
Earlier this year the company underwent restructuring and had to make a number of redundancies, this in total cost them £11.1m. The company has been struggling to cope with the industry moving to the online world.
During the last financial year HMV has sold it’s Waterstones business, closed stores, sold Hammersmith Apollo, all in a bid to stave off loses and try to balance it’s books.
This is a double glazing blog, so many of you will probably be wondering why I am covering this story. Well I have covered it from the start so I thought it would be good to check it’s progress from start to what will probably be it’s eventual finish. But also because I have a soft spot for HMV. I have spent many of my hard earned pounds in there and is one of Britain’s most recognizable high-street stores. Many other chains have fallen foul of the tough economic conditions leaving our high streets looking rather bare and forlorn.
To see HMV go, a 104 year old company founded in 1908, would be a massive shame. But unfortunately I can’t see HMV recovering enough to stay on the high-street. The music industry has changed so much over the last few years. Download sales far outstrip hard copy sales and HMV failed to move with the times. Their business model remained outdated while the rest of the world moved on.
Their CEO is stepping down after only 6 months in the top job, to be replaced by the old boss of Jessops. He has one hell of a job on his hands to turn their fortunes around.