HMV going into administration. Gift Cards no longer being accepted. - Polidicks

[QUOTE]More than 4,000 jobs will be under threat today as beleaguered entertainment chain HMV collapses into administration, signalling the end of its 92-year presence on the high street. The 236-store retailer of CDs, DVDs and computer games will appoint the accountancy firm Deloitte as administrator after HMV's banks and suppliers ran out of patience. The demise of HMV, which employs 4,350 staff, comes just days after the camera chain Jessops shut all its 187 stores and the electrical retailer Comet disappeared from the high street before Christmas. All three chains had been hammered by the inexorable shift to consumers buying their products online and cut-throat competition from the big supermarkets and the online giant Amazon. The explosion in digital downloading compounded HMV's problems, UK consumers spent more than £1bn on downloaded films, music and games in 2012, according to the Entertainment Retailers Association. Following torrid trading before Christmas, HMV last week reportedly pleaded with its suppliers, including the world's biggest music labels, games makers and film studios, for £300m of additional funding to pay off its debt mountain, as part of a radical restructuring its business. But this lifeline was rejected. HMV, whose chief executive is Trevor Moore, the former boss of Jessops, has been battling for its life since it issued a “ going concern” warning before Christmas and said it would almost certainly breach bank debt tests at the end of this month. This followed a 10.2 per cent slump in sales and its net debt rising to £176.1m over the six months to the end of October. HMV launched a clearance sale in its stores on Saturday, but last week denied this was anything other than standard procedure to clear stock. If a potential white knight emerges to acquire HMV and keep it on the high street, it is likely that more than half of the retailer's 200-plus stores will eventually close. The restructuring specialist Hilco could be interested in acquiring HMV UK out of administration and keeping a slimmed-down version operating. Hilco has delivered a turnaround at HMV Canada since it bought the business from the UK group in 2011 and knows most of the entertainment market's suppliers. It is also possible that Apollo, the US private equity firm, may now take another look HMV after the administration. Apollo bought six per cent of HMV's bank debt two weeks ago but yesterday people familiar with the situation said it had no intention to make an offer for the UK chain before news of the retailer's collapse broke. Both Hilco and Apollo declined to comment last night. The composer Sir Edward Elgar opened the inaugural HMV store opened on London's Oxford Street in 1921. HMV stands for "His Master's Voice" and the retailer is synomymous with Nipper, the Jack Russell dog that listens to a gramophone in its most famous logo. In a statement last night, HMV suspended trading in its shares but said the administrators would continue to trade the stores while they seek a purchaser for the business. HMV had been in crisis talks with its eight-strong-banking syndicate, including Royal Bank of Scotland, Lloyds, ING, Santander and Sweden's Handelsbanken, for weeks. Shares in HMV fell to 1.1p yesterday, giving it a market value of just £5.1m. Deloitte's Neville Kahn, who handled the administration of Woolworths in 2008, is set to be the administrator appointed to HMV. As recently as August, HMV had forecast it would make profits of £10m this financial year.[/QUOTE] [IMG]https://fbcdn-sphotos-e-a.akamaihd.net/hphotos-ak-ash4/408461_405879459494305_841363945_n.jpg[/img] Well that's my £10 gift card gone to waste.

[QUOTE=EzioAuditore;39226401] Well that's my £10 gift card gone to waste.[/QUOTE] Hold onto it, my understanding is that you are now included in the debt that HMV has which the administrator will attempt to settle.

[QUOTE=Jsm;39226439]Hold onto it, my understanding is that you are now included in the debt that HMV has which the administrator will attempt to settle.[/QUOTE] Not holding my hopes up to be honest. It's disgusting how HMV gave out these gift cards at Christmas knowing full well that they were going to go into Administration.

[QUOTE=EzioAuditore;39226460]Not holding my hopes up to be honest. It's disgusting how HMV gave out these gift cards at Christmas knowing full well that they were going to go into Administration.[/QUOTE] Its an easy way to make money, personally I think the law needs to be changed to offer consumers protection in these cases. I read somewhere that someone had £100s on a Jessops gift card which is now obviously worthless.

Another forum I browse, some dude made a thread there asking weather he should spend his.. he had like £100s worth and was debating getting an iPad and selling it on. He was waiting for the new iPhone or something.

[QUOTE=EzioAuditore;39226401]Well that's my £10 gift card gone to waste.[/QUOTE] I'm swear everyone in Britain has a £10 gift card lying around.

[QUOTE=Jsm;39226482]Its an easy way to make money, personally I think the law needs to be changed to offer consumers protection in these cases. I read somewhere that someone had £100s on a Jessops gift card which is now obviously worthless.[/QUOTE] The whole point of going into bankruptcy is to get court protection from creditors. When you buy a gift card, you're essentially becoming a creditor of that company in a very small way. When the court sets up a payment plan, the first people to get a bite at the apple are secured creditors (bank mortgages, secured loans, investors, etc.) Unsecured creditors (everyone else with a stake in the company, including gift card owners) are thrown under a bus and generally have to file parri passu to attempt to gain assets of the company to liquidate and try to cover their losses. Gift cards would be the absolute least concern in proceedings like this, unless you managed to do something like a group suit. This wouldn't make much sense to do though because you'd likely spend far more in legal costs than you'd recover from a mass of gift cards.

[QUOTE=Scrimp;39226690]I'm swear everyone in Britain has a £10 gift card lying around.[/QUOTE] Gift cards are the worst fucking gift ever. Just give me the amount of money it's worth you daft cunts, then I can spend it on what I want where I want.

[QUOTE=Trainbike;39226907]Gift cards are the worst fucking gift ever. Just give me the amount of money it's worth you daft cunts, then I can spend it on what I want where I want.[/QUOTE] But you're too young to be making such big decisions!!! I actually got gift cards on my birthday and christmas for FOUR YEARS in succession from one of my aunties.

Debit gift cards are the most useful form of money you can give someone as a gift.

I think I also have a gift card, what a pain. :(

[QUOTE=bohb;39226882]The whole point of going into bankruptcy is to get court protection from creditors. When you buy a gift card, you're essentially becoming a creditor of that company in a very small way. When the court sets up a payment plan, the first people to get a bite at the apple are secured creditors (bank mortgages, secured loans, investors, etc.) Unsecured creditors (everyone else with a stake in the company, including gift card owners) are thrown under a bus and generally have to file parri passu to attempt to gain assets of the company to liquidate and try to cover their losses. Gift cards would be the absolute least concern in proceedings like this, unless you managed to do something like a group suit. This wouldn't make much sense to do though because you'd likely spend far more in legal costs than you'd recover from a mass of gift cards.[/QUOTE] I meant more of the fact that companies that know they are going under continue to sell gift cards up till the moment they call in the administrators. Can't really do anything about it but its a pretty poor situation.

Balls. I have a £20 gift card I got a few weeks ago since I took back a dvd to get the blu ray version, but they didn't have it in. :(

I have a £15 iTunes voucher that was given to me as a gift, and it isn't even activated :( [editline]15th January 2013[/editline] fuck gift cards

[url=http://www.guardian.co.uk/commentisfree/2013/jan/15/why-did-hmv-fail]Pretty interesting insight into why they went under[/url] [quote]The day of the presentation came and we stood in the boardroom in front of the new MD, Steve Knott, and his directors. For some time we had felt the tides of change coming for HMV and here was our perfect opportunity to unambiguously say what we felt. The relevant chart went up and I said: "The three greatest threats to HMV are, online retailers, downloadable music and supermarkets discounting loss leader product." Suddenly I realised the MD had stopped the meeting and was visibly angry. "I have never heard such rubbish", he said, "I accept that supermarkets are a thorn in our side but not for the serious music, games or film buyer and as for the other two, I don't ever see them being a real threat, downloadable music is just a fad and people will always want the atmosphere and experience of a music store rather than online shopping."[/quote] Sounds like they had it coming

[QUOTE=James*;39228810][url=http://www.guardian.co.uk/commentisfree/2013/jan/15/why-did-hmv-fail]Pretty interesting insight into why they went under[/url] Sounds like they had it coming[/QUOTE] They were running a horribly outdated business model. The local one never had any of the new albums I wanted, and if it did it was charging £14 or so for them, when the tracks can be bought online individually or in a whole album for literally half the price. If they'd had any brains, they'd have gone onto online distribution ages ago, but they didn't, and are paying the price now.

[QUOTE=Dav0r;39227956]I have a £15 iTunes voucher that was given to me as a gift, and it isn't even activated :( [editline]15th January 2013[/editline] fuck gift cards[/QUOTE] you could use that to wacth a movie or something

First ever HMV: [img]http://i.dailymail.co.uk/i/pix/2013/01/15/article-2262399-16F48577000005DC-749_634x489.jpg[/img] :(

Fuck their Headphone waranty was awesome, if they "broke" within a year they replaced them for five quid. I went through like 6 pairs of Seinheissers doing this.

[QUOTE=matt.ant;39232060]First ever HMV: [img]http://i.dailymail.co.uk/i/pix/2013/01/15/article-2262399-16F48577000005DC-749_634x489.jpg[/img] :([/QUOTE] oh so that's what HMV stands for

[QUOTE=theevilldeadII;39228937]you could use that to wacth a movie or something[/QUOTE] basically someone stole the card and gave it to davor it doesnt work because it wasnt activated at point of sale (hehe davor was given stolen goods)

[QUOTE=Ir1shfox;39232604]Fuck their Headphone waranty was awesome, if they "broke" within a year they replaced them for five quid. I went through like 6 pairs of Seinheissers doing this.[/QUOTE] Retailers have to replace faulty goods within a year anyway? Sounds like you we're paying £5 for nothing.

[QUOTE=EzioAuditore;39226401] Well that's my £10 gift card gone to waste.[/QUOTE] Good news! (maybe) [URL]http://www.gizmodo.co.uk/2013/01/tesco-and-asda-will-refund-hmv-gift-cards/[/URL]

[QUOTE=The golden;39232588]This explains why the HMV stores here in Vancouver also disappeared. Was wondering what happened.[/QUOTE] at least they cant decide to not accept gift cards in canada