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Dublin: 8 °C Tuesday 21 May, 2013

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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Comments (52 Comments)

  • Sucks for the staff, hopefully they’ll get everything they’re owed (if they do close) and find work soon.

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  • I have to say, I’m gutted, I loved going in there to browse and buy.
    In my experience they weren’t a whole lot more expensive then other places, well I suppose it depends on what you are looking for. I also feel sorry for the staff, I was always treated very well when I had an enquiry and hadn’t got a bad word to say against them.

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  • I will miss them if they go. We bought a Nintendo 3ds XL for our 8 yr old at Christmas and HMV were over €50 cheaper then everywhere else. 2 years ago when we purchased a Wii again it was HMV were far cheaper.

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  • Looks like their gone all right. A receiver is like an undertaker for businesses

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  • Any word on why the Irish company have chosen to go into receivership instead of going down the route of examinership/administration as the parent company in the UK have? Seems like they are showing no desire to maintain the business as a going concern. This is quite insulting to the 300 staff in Ireland. Very sharp practice in any case to do this in January considering the amount of credit notes (vouchers) issued in the run-up to Christmas. Amounts to daylight robbery by senior management really.

    Reply
    • Eddie 16/01/13 #

      Examinership is the Irish version of the UKs administration. They are the exact same thing. The banks have decided to pull the plug not the management. The company can’t operate if the bank have pulled all facilities. The banks were always most likely to do this after Xmas when cash is strongest.

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    • Aha. I see.

      So, would the Irish arm of the company have been borrowing from their own lenders (i.e. Irish banks), and the parent company from theirs (UK banks), or is it a lot more complicated than that?
      Just not sure how banking on this level works.
      I suppose what I’m trying to figure out is whether or not HMV Ireland’s receivership is a result of the chaos in the Irish banking system in comparison to with the UK’s? Is it a result of the reluctance of Irish banks to lend?

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  • Staff in both Limerick stores are tonight involved in a lock-in to try to ensure the wages due to them are paid

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  • What are you talking about hmv being expensive, I rarely buy music and movies so don’t know about them much, but re video games I found hmv to be often cheapest. Many games 1-3 months old (brand new, old by release date I mean) they sold for 25 or 30 quid while GameStop or Game or Smyths, often still kept release price of 50 Eur.
    Hmv was very good for games for me, best around. Sad this happened :(

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  • pretty appalling behaviour by the company …the staff ( a family member works there…well did..) only heard on sky news the night before last that the group was calling in administrators in the UK , they understandably are very concerned about loosing jobs , meeting their bills and all the usual stresses and strains during a time like this , then the company instructs them not to accept vouchers -in fact they switched off the system that would allow the vouchers to be even processed. So then they rather discgracefully ‘opened’ for business yesterday expecting to sell stock but not honour vouchers -fully aware the front line staff would have to face the anger and frustration of the public- who-dont get me wrong havegood reason to be pissed—but then of course many went far beyond showing any level of understanding for the staff loosing their jobs…. but were up in arms over the loss of their 20 euro vouchers…..and to think that despite being put in that situation staff are now being told getting paid might be a problem….utter disgrace the way the company behaved here, the consumer association uselessness and the public havent exactly covered themselves in glory either. Shameful behaviour by a business.rant ends

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  • Pay through the nose for music now as iTunes will become almost a monopoly.You cant bate a cd, vinyl etc. I like my music to be physical!

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  • I think its so sad nothing will ever compare to going into a record store and flicking through the cds and picking up what you want. And nothing compares to having the personal experience inside the store and holding the cd in your hand and flicking through the covers its not the same just simply searching and downloading. Id still rather buy an album that download it!!

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  • I’m definetly getting into the administration and receivership business, they’re the only ones who always seem to get a large slice of a non existence pie

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  • Good luck to them. I hope they get what they are owed.

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  • Shame dat. Better selection of games and cheaper than what’s in Xtravision.
    Any chance of a Amazon.ie at this stage I wonder?

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  • I have every sympathy with the staff but no one has mentioned the suppliers who are also going to suffer, small indepenent labels and distributors. The knock-on effect could be large!

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  • Trí 16/01/13 #

    I wonder how Golden Discs are coping..is it only a matter of time for them?

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  • Sad news for staff…..not sure if voucher pressure was the last straw

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    • tom 16/01/13 #

      Come on if anything vouchers give a store cash up front its better than point of sale. Don’t attempt to suggest that vouchers brought down this failing company if anything it was a ploy to boost revenue knowing full well that it wasn’t going to honour its commitments.

      Reply
  • rach 16/01/13 #

    My partner was laid off with immediate effect at 4.30pm, and so were many other great staff members. And possibility of not being paid next Friday is very real.

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  • The day ( a little bit of ) the music died.

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  • The End unfortunately for HMV and staff in Ireland.

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  • Speaking purely selfishly for a moment, it’s such a shame. I’d say I’d go in to a HMV store for a browse about twice a month on average and rarely came out empty handed if I had the cash. But the signs were there – when CD sales were dwindling, vinyl sales were on the increase, and HMV Grafton St.’s vinyl section even up until last week was one box in the corner of their basement. Their music section on Grafton St. & Henry St. was moved below ground in 2011 to cater for Dr. Dre headphones and iPod docks that the majority of people weren’t there to shop for, but were prominently displayed presumably for their mark-up value. Like the music, though, the hardware was cheaper to buy online, and it always seemed like a mistake to me. Tower better not go the same way!

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  • Goal of examinership to protect jobs, secure future of otherwise viable co. Receivership aim is to get ? back for secured creditors. #hmv — Conor Brophy (@cpbrophy) via twitter

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  • This is one for Hugh – who owns HMV (Ireland) is it completely owned by the UK company? There used to be local investors involved.

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  • The physical media market is on its last legs. It can’t compete with the convenience of iTunes et al. From what I hear, the next generation of playstation and Xbox are going to promote digital downloads over discs, so that’ll be the games market gone too. Sad really, I prefer having something tangible

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  • Can u keep the petty comments about vouchers and prices of products for another day, some great people have lost their jobs today

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  • No doubt the stores will open tomorrow as they now have some legal ‘authority’ to refuse vouchers.

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    • If it’s in examinership then no creditors can seek payments of monies owed. That doesn’t mean that the vouchers would never be honoured but it doesn’t look good. I can’t imagine any of these companies that buy up bankrupt concerns wanting to sort out people with vouchers. Doesn’t look too good.

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    • my thoughts exactly!

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    • Hang on to them. Deloitte also handled the Comet administration and after a period of time allowed the vouchers to be used, they just need to look at the books for a bit first before deciding.

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    • tom 16/01/13 #

      Only way I can see vouchers being honoured if new owners believed the name HMV and the previous good will with costomers could be carried forward to new sales. But depending on value of all the vouchers that could be a costly public relationship excise.

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    • If they think the HMV brand has value they won’t let complaints about vouchers stop them from using it, this is the name of the most historic music retailer in history after all.

      Once they say those vouchers can be used again the problem goes away.

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  • They should start selling burgers

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  • I’d say they’re Deloitted!

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  • Tommy 16/01/13 #

    What about KPMG????

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  • Will 16/01/13 #

    Who (i.e., which creditor or creditors of the company) appointed the receiver?

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  • The only winners here will be Deloitte. After they take their fat fees there will be little left for everybody else, especially the staff.

    Reply

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