Scunthorpe HMV store is set to be handed over to administrators
MUSIC giants HMV is to appoint administrators to take over the fate of its 238 stores, one of which is located in Scunthorpe's Parishes.
The company announced that as a result of current market trading conditions, the company faced material uncertainties and that it was probable that the group would not comply with its banking covenants at the end of January 2013.
The company also stated that it was in discussions with its banks.
A spokesman for HMV said: "I don't know about the future of the Scunthorpe store."
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The news of HMV comes just days after Jessops closed its doors on high streets across the region.
A statement released by HMV said the company has continued the discussions with its banks and other key stakeholders to remedy the imminent covenant breach. However, 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, and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect.
The directors of the company understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business.
It is proposed that Nick Edwards, Neville Kahn and Rob Harding, partners of Deloitte LLP, will be appointed as the administrators of the Company and certain of its subsidiaries.
The Company's ordinary shares will be suspended from trading on the London Stock Exchange with immediate effect.