Music retailer HMV appoints KPMG as administrators after entering administration for second time since 2013

KPMG has been appointed administrator of music shop HMV after the retailer announced it would enter administration for the second time since 2013.

At least 2,200 jobs are at risk if the 97-year-old entertainment store, which has 128 shops across the country, collapses.

The administrators will continue to operate all stores while they explore business options, including a possible sale. 

The company was bailed out in a deal worth £50m in 2013 when restructuring specialist Hilco bought it.

Will Wright, partner at KPMG and joint administrator, said: “For decades, HMV has been one of the most iconic names on the high street.

"Whilst we understand that it has continued to outperform the overall market decline in physical music and visual sales, as well as growing a profitable ecommerce business, the company has suffered from the ongoing wave of digital disruption sweeping across the entertainment industry.

"This has been in addition to the ongoing pressures facing many high street retailers, including weakening consumer confidence, rising costs and business rates pressures.

“Over the coming weeks, we will endeavour to continue to operate all stores as a going concern while we assess options for the business, including a possible sale. Customers with gift cards are advised that the cards will be honoured as usual, while the business continues to trade.”