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Tuesday 15 January 2013

HMV Music Chain Store Collapse; Calls In Administrators.


The 92-year-old music store become the latest high street casualty of the credit crisis and called in administrators.


Thousands of people who received HMV gift cards for Christmas will have to bin their presents - after they became worthless since the chain collapsed.

Some 4,350 jobs are at risk if the chain closes.
The blow follows the recent collapses of camera trader Jessops and electrical retailer Comet that together cost more than 8,000 jobs.

Today restructuring giant Deloitte will be confirmed as administrator and will look to trade HMV’s 230 UK stores and find a buyer.
But experts said that at best a profitable “core” of stores will remain trading.
It is understood HMV has emailed all stores telling staff not to accept gift cards.
It is not usual for administrators to honour vouchers and they do not normally give refunds for them either.

But experts have started to question why consumers have no rights in this area, and say that urgent change is needed. Dean Dunham, the founder of youandyourrights.co.uk, said: “We’ve got to see some changes in this area. It’s almost theft.

“A gift voucher should be as good as a banker’s draft. You should be guaranteed that you’ll either be able to redeem it or get your money back.
“We’ve known for some time what happens when these companies go under and nothing’s been done to protect consumers.”

He added: “Firstly there needs to be some consumer power. Consumers should stop buying gift vouchers. But there needs to be an urgent change to the law.
"People suffer and it shouldn’t happen.”


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