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Dublin: 3 °C Monday 24 November, 2014

Deloitte appointed as receiver to HMV Ireland, stores remain closed

The move had been expected and puts the company’s 16 stories in Ireland and around 300 jobs in serious doubt.

Image: Sasko Lazarov/Photocall Ireland

A RECEIVER HAS been appointed to HMV’s Irish operation, it has been confirmed this evening.

The move had been expected and puts the company’s 16 stores in Ireland and around 300 jobs in doubt. David Carson, a partner in Deloitte Ireland, has been named as the receiver to the HMV Ireland company.

It follows a request by directors of the company to the banks to appoint a receiver and follows the music retailer’s UK operation going into administration yesterday.

HMV stores across the country have been closed today and are likely to remain closed until an assessment of the company’s viability including cost structure and property occupational costs is undertaken.

“All efforts will be made by the receiver to secure a purchaser for the stores,” Deloitte said in a statement this evening.

Earlier, the National Consumer Agency said that as HMV Ireland was separate to its UK operation, the Irish stores should accept gift vouchers which were yesterday refused in stores in Ireland and the UK after news of the administration broke.

Receivership is considered an option of last resort for struggling companies and is more serious  than examinership which is the Irish equivalent of administration in the UK.

In a receivership scenario the receiver’s allegiance is to the creditor and though the business can continue to trade it can only do this if assets are sold off in order to pay outstanding debt.

HMV stores across the country, including its iconic store on Grafton Street in Dublin, did not open today and will remain closed until further notice.

Earlier: HMV’s Irish stores closed as NCA says they should honour vouchers

Read: People love HMV… here’s why

Explainer: What does liquidation, examinership and receivership mean?

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