HMV Ireland goes into receivership

HMV's Irish division has been put into receivership.

Accountancy firm Deloitte has been appointed to take control of assets linked to 16 stores operated by the company in Ireland, which were closed today.

“This follows a request from the directors of the company to the banks to appoint a receiver,” Deloitte said in a statement.

“The company’s stores have been closed by its directors. The receiver will institute an assessment of the viability of the company and its cost structure, including property occupational costs. All efforts will be made by the receiver to secure a purchaser for the stores.”

HMV employs 300 people in Ireland. It employs about 4,000 people in the UK.

David Carson, a partner in Deloitte Ireland, has been appointed receiver to HMV Ireland Limited while the UK division of the business remains in administration.

It is understood the intention was for the HMV stores in Ireland to be closed today on a temporary basis.

The National Consumer Association (NCA) in Ireland held a meeting with HMV Ireland Ltd today amid concerns that the company was refusing to accept pre-paid vouchers following the administration move in the UK.

“The NCA’s position remains unchanged, that there is no basis for HMV (Ireland) Ltd refusing to honour gift vouchers, as the company is not under the protection of the administration or examinership process, despite what was indicated by the company to Irish consumers on 15 January,” it said in a statement.

HMV, which sells DVDs, CDs, computer games, music and audio technology, has been troubled for several years as its business was hit hard by competition from supermarkets and the online market.

HMV shares have been suspended from trading on the London Stock Exchange.

A receiver is appointed to a company in an attempt to recover monies to repay debts while administration is a process employed when a company is insolvent and facing serious threats from creditors to put a stay on legal actions.

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