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HMV Ireland enters receivership

Deloitte appointed receiver as 16 stores close

HMV's Ireland has entered into receivership today, following the UK arm's administration move on Tuesday.

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Deloitte - the same accountancy firm called in to serve as HMV UK's administrators - have been appointed receiver of HMV Ireland.

The firm's 16 Northern Ireland stores were closed today as Deloitte assesses the viability of the company and its cost structure. "All efforts will be made by the receiver to secure a purchaser for the stores," said Deloitte. Some 300 jobs are at risk.

The HMV stores also refused to accept gift cards today - a move which has been contested by the National Consumer Association (NCA) in Ireland. "The NCA's position remains unchanged, that there is no basis for HMV (Ireland) Ltd refusing to honour gift vouchers, as the company is not under the protection of the administration or examinership process, despite what was indicated by the company to Irish consumers on January 15," it said after meetings with the firm.

HMV UK, which employs around 4500 staff, entered into administration on Tuesday after succumbing to another crucial Christmas of poor sales resulting in the firm's inability to secure terms on various loans. Administrators Deloitte are searching for a buyer.

Restructuring group Hilco - the owner of HMV Canada - is rumoured to be considering buying some of HMV's 230 UK stores.

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