Sony, Universal and Warner Bros. have come to rescue HMV, after the music and video retailer collapsed. The companies are reportedly to offer easy credit terms to potential buyers of HMV in order to ease pressure from online stores like Amazon.
HMV, a British multinational entertainment retailing company struggled to survive as online shopping has taken over the movie and music distribution business. The chain is closing 239 and some 4000 staff will lose their jobs.
“No one can say this is a surprise, but it is still a shock. HMV has been part of the fabric of the music and entertainment business for decades. But there are signs that this may not be the end of the story,” Kim Bayley, Director General of the Entertainment Retailers Association said in a statement.
According to the BBC, music labels and film studios are interested in keeping the retailer afloat as they do not want to be totally dependent on such online distributors as Amazon and iTunes Store.
“At the same time both music and video companies are painfully aware of the consequences of losing a retailer responsible for around a quarter of UK physical music and video sales. We have to hope they will not stand by and watch HMV go down,” Kim Bayley said.
Sony, Universal and Warner Bros. are currently in talks with accountants Deloitte, appointed as administrators to HMV, over the entertainment retailer’s future, the Daily Record reports.
The music labels and film studios are reported to be trying to back a rescue deal for the high street giant and offer potential HMV buyers favorable credit terms and slash the wholesale prices for CDs and DVDs.
Last week HMV bosses praised the “amazing support” of suppliers according to the Daily Record.
Moreover according to the Entertainment Retailers Association statement on HMV, consumers still want to see HMV stores on their high street.
“We know there is consumer demand – in a poll last year HMV was ranked in the Top 10 of the stores people most want to see on their High Street. Data suggests they generated 170 million in-store visits last year and another 40 million online,” Kim Bayley said.
