Following the announcement that high street retailer HMV are to go into administration, financial services firm Deloitte and HMV administrators have confirmed that HMV stores will no longer be accepting gift cards.
Though shops remain open, vouchers can no longer be used in purchases, with the company ceasing trading on the London Stock Exchange.
“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,” a HMV statement to the BBC reads.
The board, “understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business.”
One of the oldest names on the high street after first opening its doors in 1921, many feel that, considering the strength of the HMV brand, the company took too long to adapt to the rise in online shopping, where 10 years ago it could well have been a true competitor to Amazon.
“While figures from the 2012 Digital Music Index showed file-sharing to be rife right across the UK, the upshot of this is that there are millions of fans accessing music each day,” said Gregory Mead, CEO of Musicmetric.
“The challenge for retailers like HMV has been to find ways to tap into this – but you’d be hard pressed to be able to walk into an HMV store and buy songs directly on to your iPod.
“The changing face of music, and that digital technology has overhauled the way we interact with records, means that artists can engage directly with fans, meaning physical retailers have needed to evolve as well. While previously it was all about CD releases and the Sunday chart show, now the most important thing is knowing where your fanbase is and what drives them so you can market to them directly and maximise revenues from a myriad of sources.”
By Gerald Lynch | January 15th, 2013