Between 60 and 100 HMV outlets will shut, and HMV has sold its stake in G-A-Y.

You may not be able to shut down Twitter, but you can close stores and fire employees, as HMV’s bankruptcy administrator Deloitte knows only too well. Between 60 to 100 stores – out of a current total of 223 outlets in the UK – will close, as part of the restructuring process.

It’s believed that Deloitte pictures HMV’s future as a much slimmer operation, with perhaps only 120 stores in its portfolio. “I remain hopeful we will be able to secure a future for a restructured business,” said Nick Edwards, one of Deloitte’s Joint Administrators for the troubled UK high street firm, even as the 190 HR staff were Tweeting dismay over being given their marching orders. With this new announcement comes the news that 1,500 additional jobs are now at risk. The affected stores will remain open until all stock is sold, but once that’s done, so are they.

As part of the breakup, HMV is also out of G-A-Y. The music retailer had a majority stake in entertainment venues, including the G-A-Y bars and Heaven, which has hosted performers such as Madonna, Lady Gaga and Cher, among many others, during its 30+ year history. HMV’s G-A-Y holding was the last remnant of its nightclub portfolio. HMV’s stake in the clubs has been bought by a holding company owned by Jeremy Joseph, founder of G-A-Y Group Limited.

“This will benefit the creditors of HMV,” said a Deloitte spokesman, “and we wish Mr Joseph the best in the beginning of a new era for G-A-Y.”

Source: The Telegraph

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