HMV have entered administration and face the risk of closure. The Daily Shift’s Shannon McNamee has more…
The music retail chain HMV entered administration on Tuesday, leaving over 300 jobs under threat in the Republic of Ireland, as well as over 4,000 in the UK. The chain which sells CDs, DVDs and other music merchandise has had its shares suspended from trading in London.
The company was unable to trade outside of insolvency protection and has been handed over to administrators Deloitte to handle its fate – either sale or closure. Their decision could put an end to HMV’s 92 years in business.
In the run up to Christmas, HMV warned how the future of their company was full of uncertainty due to economic issues.
This switch over to the administration not only causes the uncertainty of jobs, but also means that any gift vouchers bought for the store can no longer be availed of, or refunded.
This begs the question of exactly how legal it is, to refuse customers the use of gift cards, or even a refund.
Dermott Jewell from The Consumers’ Association of Ireland explained that under the Sale of Goods and Supply of Services Act, those who purchased vouchers by credit card should make contact with their credit card company.
Masses have taken to Twitter to express their sadness, condolences and outrage at the possibility of the chain being no more, with HMV trending in Ireland and the UK.
A Twitter account entitled @Ripoffireland, tweeted:
“#HMV are a disgrace…not honoring vouchers or gift cards is disgusting behavior & totally anti consumer….”
“Today I mourn the loss of a dog and his faithful grammophone. #hmv thank u for changing my life and introducing me to a lot of music I love”.
However, all is not lost. An Irish comedy club based in Temple bar have made an offer to all those angry and jilted HMV customers: Their Twitter account, @capitalcomedycl, tweeted the following:
“we will accept #hmv vouchers for admission to either of our shows Wednesday & Sunday this week :-) http://www.capitalcomedyclub.com”.
The company itself plans on contacting the Office of the Director of Corporate Enforcement to attempt to arrange some form of refund or consolation for those with gift cards.
This whole ordeal only highlights the progression of digital music. That is, downloading music, legally or illegally, and having a copy of the music on file, digitally, as opposed to having a physical CD.
The same goes for DVDs, and through this, the company have lost more than 90% of their value since their peak in 2005.
HMV CEO Trevor Moore has said he is sure that the decision to hand the company over to administration will not end in its fall.
He told reporters that “[he is] confident that we will find a solution”.