HMV appoints administrators but still won't accept gift vouchers

Deloitte has been appointed joint administrator to HMV but there is still no news about honouring gift vouchers in future.

Nick Edwards, Rob Harding and Neville Kahn of Deloitte will try to find a buyer for the beleaguered high street retailer of films, games, music and portable technology devices. But any buyer would not necessarily be liable for HMV debts, or to accept vouchers or offer refunds.

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Nick Edwards commented: "HMV is an iconic retailer and continues to be a very popular brand, but as we have seen with many high street retailers, the market is changing rapidly and conditions are currently very tough."

However, Deloitte had not responded to our questions about what it planned to do about refunds and gift vouchers. The BBC has reported that police had to be called to an HMV store in Oxford after two customers were unable to use their gift cards.

Sometimes the administrators will allow consumers to use these vouchers, but if not these customers have to seek redress as unsecured creditors or from their bank.

"Following our appointment, we are working closely with management and staff to stabilise the business in order to continue trading whilst actively seeking a purchaser for the business and assets.

"We appreciate the cooperation and support from the staff, customers, suppliers and landlords at what is clearly a difficult time."

HMV, which has its headquarters in London, has 223 stores in high streets and shopping centres across the UK, and has 4,123 employees whose jobs are now at risk.

Over the last few years the iconic company has revamped its business model many tmes as it struggled to cope in the changing markets and slowdown in sales of CDs and DVDs.

Certain HMV Group plc subsidiaries including HMV Guernsey Ltd, HMV Hong Kong Ltd, HMV Ireland Ltd, HMV Singapore Ltd and 7Digital Group remain outside of an insolvency process said Deloitte.