Trading in HMV shares on the London Stock Exchange was suspended this morning, following a statement by HMV late on Monday after news of its fall into administration was reported by the Financial Times and Sky News.
Nick Edwards, Neville Kahn and Rob Harding, partners of Deloitte LLP, will be appointed as the administrators of HMV Group and certain of its subsidiaries.
HMV said: “On 13 December 2012, the company announced that as a result of current market trading conditions, the company faced material uncertainties and that it was probable that the Group would not comply with its banking covenants at the end of January 2013. The Company also stated that it was in discussions with its banks.
“Since that date, the company has continued the discussions with its banks and other key stakeholders to remedy the imminent covenant breach.
“However, the Board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection.”
HMV was first established at 363 Oxford Street in London on 20 July 1921, and is an acronym for His Master’s Voice, the name of British artist Francis Barraud’s 1899 painting of Nipper the dog and gramophone, which have featured throughout the iconic retailer’s long history.
Deloitte is expected to keep HMV’s 239 stores in the UK and the Republic of Ireland open while it assesses the prospects for the business and seeks potential buyers.
In a last-ditch effort to raise the cash, HMV announced last week a month-long sale with 25% off prices, sparking worries that the company needed to shift stock after poor Christmas trading.
HMV is the latest high street casualty just days after camera retailer Jessops succumbed to the hands of administrators.