HMV's fucked (1 Viewer)

[GARYXKNIFEDX]

I've seen a lot of record shops,and not just in Ireland,say that it was the rent that killed them and not downloading/on line ordering etc.

 

[Kermit McDermott]

It seems landlords prefer no rent to a some rent. Strange.

 

[Diumraid]

I believe that rates are a large part of it too - outrageously high and taking no account of the downturn.

 

[GARYXKNIFEDX]

Wouldn't doubt that.

 

[chickenmac]

ha ha delighted

 

[BonsaiSuperstar]

ha ha delighted

Welcome to the forum chickenmac..solid first post.

 

[nlgbbbblth]

ha ha delighted

tomorrow night, special date for a special guy.

 

[Scientician 0.8]

I believe that rates are a large part of it too - outrageously high and taking no account of the downturn.

Rates and rent are atrocious. It's as someone said to me before that the last customer of the day would be your profit. That's the reality for lots of stores that have low customer base. Rates should be adjusted to footfall or profits or something. It's extortionate and a huge bulwark against new Irish retail outfits.

 

[snakybus]

Do you mean electricity rates? Why not just turn off the lights and sit in the dark? Turn them on then when a customer comes in.

 

[ann post]

they dont have rates in ballymena, but they do have mice.

 

[magicbastarder]

Do you mean electricity rates? Why not just turn off the lights and sit in the dark? Turn them on then when a customer comes in.

council rates.

 

[east hastings]

The council rates would only be a small portion of the cost compared to the rent. I reckon the rent on that place could be around €700,000

 

[ann post]

i heard something like 1.5 million mentioned.

the rent is considered 1/20th of the resale value, hence landlords being stupid.

 

[тхеодоре кацзынски]

The council rates would only be a small portion of the cost compared to the rent.

Which is grand for bigger chains,the smaller independent shops are getting crucified by rates.

 

[rettucs]

good news

Restructuring specialist Hilco said it would buy 141 stores belonging to rescue Britain's most high profile entertainment retailer HMV in a deal estimated to be worth about £50 million.
The company also said it is in talks with landlords with a view to re-establishing an HMV business in Ireland.
It has long been the favourite to take HMV out of administration after the firm bought up its debt in January.
The outlets being acquired include 25 that were slated for closure, Hilco said today in a statement on its website.
The buyer will reverse earlier decisions to sell tablets and other devices in the stores, providing more space for "an enhanced music and visual range," according to the statement.
HMV, whose first store on London's Oxford Street was opened by English composer Edward Elgar in 1921, appointed administrator Deloitte to find a buyer for the business in January, after struggling with declining CD, DVD and video game markets as well as fierce supermarket and online competition.
Hilco, which also operates HMV Canada, bought the retailer's debt in January and has been helping to run HMV as part of the administration handled by Deloitte LLP. Deloitte has closed some HMV stores and sold others after sales were hurt by competition from online retailers and supermarkets.
"Generally, people think rescue from liquidation is a good thing," said Jon Copestake, a retail analyst at the Economist Intelligence Unit. "I imagine the news will be fairly well greeted. Hilco did actually turn around HMV Canada."
Ian Topping, a former chief executive officer of Steinhoff Group in the UK, and Henry Foster, an investment director at Hilco, will lead a Hilco team working alongside HMV management.
Hilco has been involved in many high profile UK retail restructurings, including Habitat, Woolworths and Borders.
Last year it was also brought in to clear stock and close stores at Clinton Cards and JJB Sports.

 

[rettucs]

curious to see how the talks with the landlords go. Hopefully the bewleys ruling the other week will have ruffled a few feathers

 

[7 - No tomorrow]

Isn't this business model dead though?

 

[rettucs]

the shop on grafton st was profitable. It was the rent that killed them

 

[7 - No tomorrow]

The arc of how people consume music and movies seems headed in one direction, to me anyway.

I mean I miss record shops and all, but it's like trying to save cooperage.

 

[rettucs]

agreed. They seemed smart in there though. There was always some kind of sale on and those racks were always well stocked.

Suppose selling games is a big help too.

I always popped in there anytime I was in town, and more often than not would leave with a handful of CDs.

I miss it. I think they kept Tower on their toes too. Nothing against Tower, but no harm for the consumer having a bit of competition in that area.