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Dublin: 13 °C Tuesday 21 May, 2013

HMV holds crisis talks in bid to avoid going into administration

The music chain has a number of shops in Ireland and the UK and employs approximately 4,000 people.

HMV has a number of stores in the Republic.
HMV has a number of stores in the Republic.
Image: Sasko Lazarov/Photocall Ireland

HMV IS ON the brink of going into administration as the company’s directors continue their talks on how to save the retail giant.

Sky News is reporting that accounting firm Deloitte has been lined up as a possible administrator to the company, which has 16 shops in the Republic of Ireland and some 230 shops in the UK.

Up to 4,000 jobs would be at risk were the music shop to close.

The news comes after HMV warned last month that it may breach its January 2013 agreements with lenders.

HMV began trading in 1921 and had its first store on London’s Oxford Street.

Read: HMV warns that it may not comply with banking agreements >

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Comments (125 Comments)

  • It would be awful if the Grafton Street store closes,it and Tower are the only decent places to get film and music,although Tower can be prohibitively expensive at times

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  • I feel sorry for the staff.

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  • HMV should have really pushed the recent vinyl revival, as Tower Records did, but for some reason chose to completely ignore it. You can’t illegally download those big, beautiful picture sleeves. I only caught the tail-end of vinyl back in the early nineties when I first got into music, but it has remained my favorite format to this day. It was an opportunity that HMV missed.

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    • That i agree with, I read a great piece with a former Indie record store owner who said you have to sell CD’s because it’s the physical media most people want so it gets them in but there is no margin in it. In store he pushed vinyl big style, gets the collectors in on top of the normal shoppers plus there are much bigger margins with it. Plus a 12″ record is a truly awesome thing, if only they could find a way to stop vinyl records degrading every play I’d be on board in a huge way, the sound from a new one is something to behold.

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    • Sad to see Fopp go…I used to do alot of shopping in the one in Glasgow. Great place for vinyls too.

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    • Oh no!!! I’d forgot fopp were bought out by them!! The amount of money the one off market street in Manchester took from me when I lived there!! That’s even sadder than the core business, they were cool stores!

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  • Explains a lot…. Looked for a DVD box set at Xmas and they “did not have and would not be doing” as they were disagreements with suppliers and distributors. Was told this twice by different staff at each of the Limerick Stores. Nice shop to wonder around even if I needed nothing… Especially the Cruises St shop in Limerick.

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    • All i can say is a sad day if it does go especially for a company which has been trading for near on 60 years ,high streets slowly being destroyed sure Limerick city centre is like a ghost town these days

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    • True, sad day if it does close and as for Limerick City/Centre it’s no help to high street stores like these who need footfall and people, the city is dead. Go to City Centre about once a yr as a “must go/ have to go” and that’s at Xmas. Just for the sake of saying was in the city.

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    • @gerard if that was the love/hate box set u were looking for its cause hmv don’t deal with rte anymore as rte won’t allow there DVDs to be put on sale

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    • Yea before Xmas ’twas Love/Hate but can’t bide well for a big company like HMV if they don’t deal with the main media group of a country like RTE who put out loads of there series on DVD ?? But had similar Fob off last wk over Revenge box set. Got told by limerick store we only got 3 copies, underestimated DEMAND ???? Writing on the wall…..

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    • Agreed I was UN both limerick stores last week the X sticker sale reminds me if when zavvi closed down in the cresent with 25% off all stock, I really hope it stays open, I’m hoping that this is just the hmv board putting pressure in there banks to restructure there loans and keep moving forward, they could do with a down scale

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    • Say them at that X sticker stuff last week in the Cresent and was wondering what they were up to ?? It looked very ODD……

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    • Hate to say it but I reckon the Irish wing of the company will be the first to get the chop dramatically if not completely rid of. They’ll want to keep their key stores in the UK, where the footfall will be higher.

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  • Cash in those gift vouchers quick.

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    • They’re not accepting gift vouchers anymore

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    • I did last week thankfully !! But as a company they surely knew they were in trouble before today and at Xmas the gave out vouchers for money off in there own stores !! Found my own receipt from per Xmas and ’twas €5 voucher off purchase over €35 (to be spent in January) which is a lot, don’t know if the voucher increased if u spent more than what I did pre exam ?

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  • Really hope they pull through there will be nowhere for us lads to go while wife’s/girlfriends go clothes shopping. The where pretty competitive on new releases also some of us like to own the physical media.

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  • Does it really only have just 10 stores in Ireland? Searching for music and movies on iTunes is nothing compared to walking into music store and flocking through its collection….sign of the times

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    • mister 14/01/13 #

      You are so right!

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    • David 14/01/13 #

      Flicking through the DVDs and CDs doesn’t save any businesses, if once you get home you illegally download/buy online said movie/song.

      It may sound nice and old fashioned saying you love flicking through the selection in a bricks and mortar store, but clearly not enough people actually put their money where their mouth is or this situation (and the many casualties in this industry which have gone before it) wouldn’t be happening.

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    • The amount of great albums i have bought without intending to after a day of flicking in HMV!!

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  • It’s hard to compete in digital times I’d say, but I really hope they pull through

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    • If they had taken the business online when the new market emerged then they’d be in a different situation but just like other bricks and mortar stores they thought they were invincible. I feel sorry for the staff. And I do have many memories of the Cork store. Spent quite a fortune there when I was young. But times change…

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  • Wow, going from bad to worse!

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    • MVM 14/01/13 #

      It’s not worth saving,within 5years cd’s will be in the past.
      ITunes/mp3/youtube all more competitive and you don’t have to travel to a shop

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    • Modern technology will see many more companies fold in the future.
      Take for instance Netflix.
      They are a most serious competition to the likes of Extravision etc.
      Entertainment business must be one of the most competitive to date.

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    • Apparently stores have been instructed not to accept gift vouchers from tomorrow morning. Two weeks after Christmas, that’s beyond cynical.

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    • I hope physical music never dies away MVM, it has a magic that computer files living in a cloud never will. The anticipation of waiting for an album to come out, buying it on the way into school/work, checking out the booklet and artwork all day during breaks and the trip home and then finally playing it when you get in. That not to mention the tinny sound of mp3s when played at anything approaching a loud volume and joy of actually owning something real and tangiable. Hopefully Tower can ride this storm, they’re all music fans have left in Dublin now.

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    • MVM 14/01/13 #

      @josoph,I do agree with what you are saying I still buy the odd cd but most music I get is downloaded for free

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    • MVM 14/01/13 #

      *joseph

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    • Yeah, I can’t bring myself to download music illegally and if I’m paying i want the physical product. Would only use iTunes for the odd EP or single that was only available online.

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    • I see what you’s mean about cd’s becoming obsolete but I don’t thing that’s the problem. I buy most my albums on vinyl because I prefer having a physical format rather then just a downloaded copy. This might sound sappy but I think you connect more with a physical copy you have to look after but I haven’t bought a CD in years. A lot of small, indie, record stores are doing ok for themselves. Thing it’s hitting the chains worse now as they put so much money into stock and locations.

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    • Vincent ya better hope they don’t ban vouchers cause otherwise I’ll be marching out of there with that wire box set so help me god!!!!

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    • Thats fair enough and i see uv got loads of likes there so i dont know why im taking you on.. But im 18 and no-one i know buys cds, at least not many, everyone has thousands of songs on their ipods these days and they are all free downloads.. Im just a normal person at my age, not a criminal :p if you pay for music youre just seen as wasting money.. Clearly you have traditional views of having a hard copy.. Cd players are outdated, people have docks for their ipods instead.. I got a box set of love/hate for xmas.. When i showed people they asked “why didnt you just watch it online”..

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    • Sad but true. Anyone with a bit of cop on would have seen this, they’ve veered towards the technology end of things in recent times, too little too late I’d imagine.

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    • Peter I hate to break it to you but copyright theft is illegal! The reason I won’t do it isn’t some kind of moral crusade to not break any laws ever, it’s that I’m an enormous music fan and one I want the artists to make money from their efforts and two I want it to still be financially viable for artists to make music and for people to nurture and promote them, if it isn’t all we’re left with is manufactured pap which has its market but has no artistic or musical merit. Don’t get me wrong I’m not some kind of crusty old Luddite, I’m 29 and part of the original Napster generation, I see the advantages of mp3s and adore my iPod for commuting and in the car but I wouldn’t play an mp3 through my stereo in a billion years, sounds pretty crap once it gets up loud, if physical media was to die out I would be hunting lossless versions of albums online and would wirelessly hook the library up to my computer with AirPlay or whatever has replaced it by then.

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  • Agree with others, sad so many staff will lose there jobs but lets be honest leaving out itunes and digital media HMV never did themselves any favours with there high prices compared to other outlets. I remember browsing there games sections over the years and never bought a thing from them due to everything being 5-10 euro higher than the likes of gamestop or game.

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  • sarah 14/01/13 #

    It’s a real shame I hope it remains open as I have gone from buying CDs to buying of iTunes and back again to buying CDs. iTunes is grand but it your computer crashes and you lose all your music your back to sq 1. I started back buying CDs as the have gotten cheaper over time but at least I always have it and not in fear my computer/iPod/iPhone is gone to die. Plus there’s nothing better than browsing music shops. My favourite type of shopping.

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  • I love shopping in HMV. Was in there 2 weeks ago and came out with 5 cds, cost a little under ?50. I’d rather pay a bit more for a physical copy instead of getting a download. Really hope they don’t close.

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  • This is a very bad thing, their stores are class

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  • jrbmc 14/01/13 #

    I hope it doesnt go

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  • Spend those gift vouchers a s a p

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  • I got €60 worth of HMV vouchers at Xmas and spent €50 of it on iTunes. Given their perilous financial state found it strange that they sold the product(s) of their largest competitor. Hope they can pull through as I still spend €300 or €400 each year on DVDs and CDs in the chain and more redundancies are not what Ireland needs.

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  • Eddie 14/01/13 #

    HMV had tried to compete in the digital world but to no avail. Changing your structure from a physical presence to online is not as straight forward as some people suggest.
    Besides competing with corps the size of ITunes or Amazon is impossible for someone even of HMVs size.
    The advantages online stores have other the high street via their tax structures is unfair. Local governments will have to do something fairly soon to tax online players or they are not going to have any income. The rates and taxes HMV had to pay was a massive disadvantage.

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  • Its sad that its closing. However im not sad that the liffey valley branch are closing as they are just plain rude. I got served the other day and the girl kept blowing bubbles with her gum. Management are rude also. Much worse has happened to me in there so I go to dundrum which is 30 minutes further away but much nicer.. also spent 210 euro HMV card other day phew… dont work woth people if you dont like people. Glad that branch may lose their job as they dont feckin deserve it.

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  • Would be sad to see them go if it happens. The company needed to start doing things they are doing now (sponsoring live gigs, broadening their range of merchandise, integrating themselves into the community more) about 14 years ago when Napster first made waves.

    Honestly the music industry, by that I mean the executives in charge of these companies, response to file sharing seems to have ranged from pretending it’s not there to blind panic, with not one decent idea put in place to combat the damage it was always going to do. Still I bet the executives will land on their feet, such is the way of the world.

    High streets and shopping centres in ten years time are going to be ghost towns unless city councils do something fast. Given that these are the same geniuses who believe putting up shop rates in a recession is the way to go I don’t have high hopes. Still I bet the councillors will land on their feet, such is the way of the world.

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  • Well once again Deloitte will make a killing will treat the staff awfully tomorrow as they did when Principles went into Administration, I feel for the staff especially when some stores last week were giving gift cards instead of refunds once again ordinary Joe soap will loose out with gift cards not being honoured. They say they will trade as normal well then gift cards should be honoured. These Administrators can charge up to €500 an hour in sorting things out,.

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  • I bought a load of BluRay DVDs but the security tags were left on and I could not remove the tags. I brought them back to the HMV store where I bought them. First the accused me of possible shop lifting, then when I provided the actual receipt, they told me that I should have asked the HMV employee to remove the tag, you can’t take out the DVD unless it is removed.

    Then I was told that the security tags can only be removed at time of purchase not afterwards and was refused replacements.

    It was only when I went into meltdown that I was hushed up with a cash refund.

    A friend showed me how to stream and buy digital movies online, you can preview, then rent or buy if you would like to buy. It is so easy, clean, no hassle with security tags and no grief factor.

    When an old fella like me cops on that online is better than retail, and bear in mind that I am we’ll outside the buying demographic, then you know that HMVs time is limited.

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  • Shame about the lost jobs and more people out of work. I better use my vouchers

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  • Liam 14/01/13 #

    This is not surprising really, giving that how people can get the music they want, whether it be from Itunes, free downloads, or just getting the songs from a friend, and although these options were available in the past, its much more convenient to not go to the shop to buy an album, therefore stores such as HMV are becoming obsolete.

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  • For god sake there be nowhere to buy buy a few DVDs now dam Internet , they do have good offers on box sets etc cheaper than online

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  • Hope it doesn’t go to the wall, I anyways get my records from them via their online shop. I would support local but no proper record stores left in Waterford City.

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  • I love the Internet but it has kind of ruined shopping for me. Try to support independents as much as possible. Buy local. Very sad news – HMV is one of the older ones…

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  • Sign of the times. They never moved on past physical media for selling music and movies. iTunes has replaced it.

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  • I hope not…what the hell am I going to do now when she is shopping?

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  • If hmv closes it will only really be game stop that will sell video games and they will start to increase there prices. Since game was taken out of Ireland HMV was really the only big competitor

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    • Dont know how game closed they were way cheaper than gamestop. Cant wait till they close

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    • Game closed because they were much more expensive on new release titles and GameStop being an american company had lots of deals done with developers for exclusive dlc and packaging, also gamestop killed game on 2nd hand games, in fact it’s probably the reason GameStop is still there cause since game left the market GameStop have upped all there prices

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  • We’re can you buy games for play station and Xbox if these lads fold too? Its Crazy!! The games industry still has a market in bricks and mortar. How did game store close down? You can’t pirate Xbox and play station games as easy as music?

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  • Some of the effects of illegally downloading music or films. There will be nowhere good to buy music if they go :(

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    • not just, the effects of internet technology, itunes, netflix has done a lot of harm too, its the whole online thing.
      even bookstores, even printers! ipads, .pdfs, .epub files, apps, the whole bloody lot. more and more people just don’t want clutter in their lives. where can you put it all?

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  • As technology advances so will the need for us decline.

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  • Apparently Apple are just waiting for them to vacate the Grafton Street shop.

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  • The writing has been on the wall for quite a while for HMV. Companies that cannot adapt to modernity and changing times are doomed to perish. A lesson western banks have not yet had to learn courtesy of benevolent governments/taxpayers.

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  • I don’t really see how the closure of HMV will affect indie labels. Most indie bands/labels got on the internet wagon years ago. I feel sorry for the staff who I always found helpful and polite. Its crap that another company is closing its doors but there are so many options for getting music now that its going to be hard for any traditional shop to compete.

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    • Indie labels sell to indie stores on a sale/return policy, HMV buy the CDs outright. The head of Domino records was quoted as saying it could affect labels like his in a big way and he is lucky enough to have a headline act in the Arctic Monkeys.

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  • Well when they charge €24 for an album which is only €15 on iTunes you can see why

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    • But when you buy an album from iTunes you don’t actually own it. iTunes do. So save hmv

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    • €24 for an album!!! Where did you pull that figure from!!! Even in the tiger they were only hitting €20, which was still ridiculously expensive. Most new releases in there now are between €10.99 and €13.99, maybe a couple of quid extra if you want the fancy one in a gatefold sleeve with the extra DVD and all that jazz!!! And €15 on iTunes is a big big big bit of an exaggeration too!!!

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    • iTunes is crap, most artists are now uploading their music themselves on their own servers to cut out the likes of these making money off them. Flac and Wav are now becoming the demanded standard, lossless quality. When something new comes out, go find that artists web page for more info. Bandcamp is also another new one, payment goes directly to the artist. Hate itunes mp3 quality, go buy it elsewhere if you can, hopefully from the artist homepage.

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    • The latest NOW compilation was €24 before Xmas
      Was €15 on iTunes

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    • Ah compilations are always that bit more i suppose, I didn’t think of them, wouldn’t touch them with a barge pole to be fair, fair play. Still you are getting usually 40 odd songs for that amount, I wouldn’t argue that was extortionate.

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    • Not my cup of tea either but if kids can go into hmv buy €25 iTunes credit and then buy lets say the NOW album plus another album from iTunes for the same money as HMV charge for the NOW CD you can see why as a business it’s failing.

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    • MVM 14/01/13 #

      YouTube and mp3 converter software that’s free to dl every song you could possibly want

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    • perfect example, the new Scott Walker album, buy it direct from his label 4AD as mp3 for $8, on itunes? €8.99, thats $12! but on his label site you can also buy the Flac for $10! still less than itunes and far superior quality, you can make your own mp3s from the flac files later with any free converter online such as XLD.

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  • Seems ppl are more interested in where they can get their music rather than the hmv staff.

    Hopefully things work out for them.

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    • Don’t get me wrong i have great sympathy for the employees. I think what you are seeing though is people reacting to yet another sign of the disintegrating of the area of the entertainment that in some ways means more to more people than any other.

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  • Shame on the CEO – he is probably pulling in a fat bonus package and berating staff for falling betamax sales.

    The story of HMV is all too similar with intransigent legacy industries of the 1990s.

    I wish the staff well who were just hoping for a good employer and not too much pressure, but the online revolution is not new. I am really surprised HMV have lasted this long. At lease Xtravision are now selling popcorn, but the real business is online instant supply. I have been throwing CD cases in the bin since 2005 after I ripped the songs off. HMV have outstayed their welcome and unimaginative management have been just riding the donkey for too long.

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    • Eddie 14/01/13 #

      HMV have provided a great service to the domestic Irish economy in the form of employment and tax revenue for the economy. Buying product online may be better value for you individually but in the bigger scheme of things all the cash you spend on home entertainment is leaving our country and heading elsewhere. Unfortunately this is not a good thing for our economy.

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    • Sorry Eddie, but the staff were just hawking plastic boxes. HMV were never passionate record shop people. It was just cheap staff in t-shirts, punching the buttons on the till. I’d give Tower records staff a lot more credit, but still it was just a chain, nobody had a real passion or sense of pride over their stock like a vintage wine merchant.

      We should instead value more our tiny one shop bookstores and music retailers who have real rarities or inspired stock on the shelves to inspire purchasers. True lovers of their content. Winding Stair Bookshop, Freebird Records etc.

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    • Eddie 15/01/13 #

      I agree the indies were the guys who provided a nice human touch to the music buying experience. I always encountered friendly staff at HMV though too.

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    • Isn’t Tower independent?

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  • I’m surprised they haven’t got to the wall a long time ago, with online buying and illegal downloading.
    I feel sorry for all the staff but they ripped us off for years, 20 euro for an cd album back in 2007 !

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  • If HMV goes it will be a very sad day for music lovers.

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  • At the risk of sounding like a moan, I had a splurge on DVDs after Christmas but, with or without HMV, the need to pay Property Tax, water charges and all the new taxes to come has out paid to any more buying. I may download an occasional film or music album but like the vast majority of people, my buying days are well and truly over.

    Austerity means that consumer buying will greatly diminish again this year.

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  • Its a sad day for music and will hurt the industry as a whole. Independent labels will proportionately be hurt by this much more than the majors which will probably see the slide in the quality of music available decline further. Lets not let this happen again and get out there and support our Indie’s such as Tower and the like.

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  • Question being- WHY DID ANYONE BUY GIFT VOUCHERS??This was on the cards mid last year!!

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    • WHY DIDN’T YOU WARN THEM?! OMG! LOL! smileyface. FFS. Perhaps shoppers, especially seasonal shoppers, don’t always check brands/shops of long-standing for signs of imminent economic demise, despite it being so obvious to the learned.

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    • Myself and girlfriend got eachother the same box set. I returned one and they would only give me vouchers. this was a couple of weeks ago. absolute bullshit.

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  • Rip Off anyway!!

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  • Sad loss of jobs but been rip off for years and can’t compete with new online media outlets.

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    • Of you compare the prices of new albums in hmv with that of iTunes they work out either tha same or cheaper in store if the album has more than 14 tracks, 99% of new albums in hmv are 13.99 in I tunes most albums work out a euro a song some time 1.29 so hmv has been competitive for the last few years

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  • Sad that so many people are probably gonna lose their jobs but I remember paying €40-50 for new release films on DVD in the days before illegal downloading. Never found the staff particularly helpful either. It has always been just a building with racks of CDs and DVDs. Don’t know what people are getting so nostalgic about to be honest.
    Also if they had successfully migrated to online sales they would probably have closed most of their shops anyway.
    Those jobs were doomed one way or another.

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  • They need to truely re invent themselves!they should probley look at other industries nd diversify their business!look at the likes Nokia they used to make wellies ha..granted they aren’t doing too week either

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