Uncertain future for HMV in Peterborough as firm is placed into administration
Workers at HMV in Peterborough are facing an uncertain future after the entertainment chain was placed in administration - putting more pressure on the High Street.
HMV, which has a branch in Queensgate in Peterborough, is set to appoint corporate undertakers at KPMG as administrators amid a cash crisis.
It will be the second time HMV has collapsed in recent years, having filed for administration in 2013, after which it was acquired by its current owner, Hilco.
High business rates, weak consumer confidence and the rise of online streaming services all took their toll on HMV.
It is not known what the future holds for the Peterborough branch and its staff.
The failure of another major high street name before the year is up caps a miserable 12 months for the retail sector.
The likes of Poundworld, Toys’R’Us and Maplin have all gone bust this year, while heavyweights Marks & Spencer and Debenhams have announced plans to shutter hundreds of stores.
Several others - including Superdry, Carpetright and Card Factory - have all issued profit warnings.
Following today’s news, Peterborough Euro MP Alex Mayer said: “This is very sad news for the staff in Peterborough who now face an uncertain future. It’s a real blow just days after Christmas.
“Our High Streets are under pressure like never before with stores facing online competition while they pay Business Rates, and falling customer confidence amidst Brexit uncertainty.
“It’s been a truly dismal year for the retail sector.”
Richard Lim, chief executive at Retail Economics, said: “Set against the backdrop of turbulent political and economic undercurrents, this perfect storm of pressures has intensified into a year of distress for the industry. While it is too early to assess the relative success of Christmas trading, it’s clear that consumer confidence is fragile and shoppers’ propensity to spend is weak.”