Stay of execution for Cumbrian HMV store
Last updated at 12:00, Saturday, 02 March 2013
Workington's HMV store has been granted a stay of execution thanks to last-minute deal struck between the landlords and the administrators.
It had been rumoured that a manager was coming to the store on Washington Square on Thursday to tell staff the shop would be closing this weekend.
But in a sudden and unexpected change of fortune, the store’s 10 employees learned that they would be keeping their jobs – at least for now.
Dave Fletcher, town centre development manager, confirmed that the store will remain open though he could not say for how long.
But HMV’s administrators Deloitte have accepted the deal put on the table by Riddell which owns the Washington Square development in which the store is based.
Mr Fletcher said: “On Thursday we came to an agreement with the liquidators which means we are keeping HMV as a store at the present time.
“We hope that when it gets sold, the purchasers will look at it more favourably as a growing concern.”
He added that trading stores were always more attractive propositions because of the money involved in re-opening and re-stocking an outlet after it had closed down.
Mr Fletcher said the deal “very good” for the administrators but declined to reveal the particulars of the agreement brokered.
He also revealed that managers from Workington and Carlisle were swapping places.
The town centre music store had been among 66 stores earmarked for closure.
It was then announced that a further 37 stores across the country would also be shutting, taking the total number of job losses since it collapsed to more than 1,600.
HMV went into administration in January after facing intense competition from online retailers, digital downloads and supermarkets in recent years. But hopes of a rescue deal were raised after restructuring firm Hilco bought the company’s £176m of debt. Hilco, turned around the fortunes of HMV’s Canadian arm.
First published at 11:15, Saturday, 02 March 2013
Published by http://www.newsandstar.co.uk
This is great news for all the staff who work there. It is nice to see the landlords being flexible.
I wonder if they would be flexible for an independent store. I doubt it.
Have your say
Good move by the landlords there - I think it will pay of for them in the long run.
Posted by Adam on 3 March 2013 at 15:38