HMV set to go into administration

News from the Boston Standard, Lincolnshire: bostonstandard.co.uk, on Twitter @standardboston
News from the Boston Standard, Lincolnshire: bostonstandard.co.uk, on Twitter @standardboston

Yet another store on the Boston high street could be facing closure this week, following an announcement that HMV was to go into administration.

The music and film retailer, which has a store in Pescod Square, has suffered from falling sales in current market conditions which have left it facing ‘material uncertainties’.

Discssions have been ongoing with banks and key stakeholders since the middle of December, after the store announced it would pribably be unable to comply with its banking covenants at the end of this months.

An official statement issued by the company said: “The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection, and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect. The directors of the company understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business.”

It is proposed that Nick Edwards, Neville Kahn and Rob Harding, who are partners at Deloittle, will lead the administration process.

About 4,000 jobs will be at risk.

The news comes just days after Jessops closed 187 stores around the UK.