http://www.dailymail.co.uk/news/article-2262399/HMV-More-4-000-jobs-risk-firm-calls-administrators-rescue-talks-fail.html
Labour business spokesman Chuka Umunna said: ‘For the sake of HMV’s employees, we hope a way can be found to keep the business going – the demise of this institution would be a body blow to British retail.’
HMV’s administration means it can legally declare gift vouchers worthless, a blow for those who received one as a Christmas gift.
But administrators could opt to keep stores open during the process in order to raise funds by shifting as much stock as possible. HMV failed to keep pace with the digital revolution, as shoppers turned to online retailers such as Amazon.
Internet firms were able to undercut the company thanks to lower overheads.
It has also been under attack from supermarkets such as Tesco and Sainsbury, which are able to offer discount DVDs and CDs thanks to their size.
The beginning of this year has seen HMV offer massive discounts in the hope of filling its stores and boosting revenues.
But despite the efforts, dismal Christmas sales were the final straw for the firm’s banks. HMV is understood to have asked them for a £300million lifeline, but was turned down on the evidence of its recent performance.
The decision by RBS and Lloyds to pull the plug on HMV is likely to cause a backlash, given that they were both bailed out by British taxpayers during the financial crisis.
The appeal for help from the two lenders came just days after the company asked suppliers to give it £300million to pay off its debt and revamp its business model.
That request was also turned down.
* * *
http://www.dailymail.co.uk/news/article-2262286/Jessops-staff-appeal-help-finding-jobs-sticking-pictures-shop-window-collapse-camera-chain.html
Collapsed HMV refuses to accept gift vouchers as more than 4,000 workers face the axe and administrators warn of mass store closures
- Retailer has struggled in the face of growing demand for digital downloads
- Company had a poor Christmas sales period despite 35% sales reduction
- Almost 300 stores and 4,350 staff face uncertainty as negotiations unfold
- Administrator announces gift cards will not be accepted in stores
Thousands of gift cards given as Christmas presents are worthless as HMV announced it would no longer accept vouchers after collapsing into administration.
The historic music shop has become the latest high street victim of the financial crisis and double-dip recession, and its 4,000 employees are facing the axe if a 'white knight' rescuer cannot be found for the chain.
City firm Deloitte was brought in to take charge last night after crisis talks failed to find another solution - putting HMV on course to be the second household name to go under this year.
Today it was revealed that the chain will no longer accept gift cards and vouchers as Deloitte takes charge of the 238 stores.
Many Twitter users reacted with fury to the announcement that the shops will no longer accept its own gift cards as payment, just weeks after hundreds of them were bought as Christmas presents.
'It's a p*** take that HMV won't accept vouchers,' @Meygziie wrote, while @KevinAshford7 said, 'That's my £20 Christmas gift voucher going in the bin.' @NiceEtoile added: 'How is this legal?'
The cards are currently worthless, but if HMV finds a buyer it is possible that the new owner will honour them, meaning that it may be worth people's while to hold on to the cards.
The writing had been on the wall since the run-up to Christmas, when dire sales figures forced the firm to admit it might breach the terms of its bank loans.
HMV’s banks – state-backed Royal Bank of Scotland and Lloyds – said they were unwilling to go on lending it money.
The move to go into administration follows the closure of camera chain Jessops with the loss of 1,300 jobs at the weekend.
It is still possible that a ‘white knight’ buyer could ride to the company’s rescue at the last minute, buying part or all of its 230-strong network of stores. If not it will mean the end of a name that has graced the high street since 1921.
There was no sign of a saviour for HMV today, after US-based investment firm Apollo Management walked away from takeover talks.
Labour business spokesman Chuka Umunna said: ‘For the sake of HMV’s employees, we hope a way can be found to keep the business going – the demise of this institution would be a body blow to British retail.’
HMV’s administration means it can legally declare gift vouchers worthless, a blow for those who received one as a Christmas gift.
But administrators could opt to keep stores open during the process in order to raise funds by shifting as much stock as possible. HMV failed to keep pace with the digital revolution, as shoppers turned to online retailers such as Amazon.
Internet firms were able to undercut the company thanks to lower overheads.
It has also been under attack from supermarkets such as Tesco and Sainsbury, which are able to offer discount DVDs and CDs thanks to their size.
The beginning of this year has seen HMV offer massive discounts in the hope of filling its stores and boosting revenues.
But despite the efforts, dismal Christmas sales were the final straw for the firm’s banks. HMV is understood to have asked them for a £300million lifeline, but was turned down on the evidence of its recent performance.
The decision by RBS and Lloyds to pull the plug on HMV is likely to cause a backlash, given that they were both bailed out by British taxpayers during the financial crisis.
The appeal for help from the two lenders came just days after the company asked suppliers to give it £300million to pay off its debt and revamp its business model.
That request was also turned down.
* * *
http://www.dailymail.co.uk/news/article-2262286/Jessops-staff-appeal-help-finding-jobs-sticking-pictures-shop-window-collapse-camera-chain.html
Snapshot of desperation: Doomed Jessops staff appeal for new jobs by sticking their pictures in shop window
- Camera retailer closed its 187 stores across the UK after going into administration last week
- Devastated staff at the Warrington store have put photographs of themselves in the window in a plea for new employment
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Devastated workers left jobless by the collapse of photography chain Jessops have resorted to sticking their pictures in the store window in a desperate bid to find work.
Employees of the Warrington branch plastered the window with their images along with a sign that reads: 'Five unemployed and loyal staff seeking work. Can you help?'
Former sales expert Lanza Martineta said he and his fellow team-members - some of whom have worked for Jessops for up to 15 years - wanted to show the 'real faces' behind yet another blow to the British High Street.
'Devastating effect': Staff from the Warrington branch of Jessops plastered their photos in the window of the store in the hope of finding new employment
Around 1,370 shop staff were left jobless when Jessops closed its 187 stores across the UK last week.
Further redundancies at the chain's head office in Leicester also look likely.
'Loyal staff': Mr Martineta's picture beneath the sign featuring the staff's call for help
Mr Martineta, 44, said their window display - which also includes a sign that reads: 'What's happening to our high streets?' - had created quite a stir in the town centre.
'It's brought quite a bit of attention,' said Mr Martineta, who said people had come in to sympathise with the team as they packed away stock and equipment inside the closed store.
'We have had literally hundreds of people knocking on our doors to tell us how sorry they were that we were going,' said the former salesman, who had worked for Jessops for around four years.
'They were saying it's now almost impossible to get your photos printed in the centre of town.
'We were packing up the goods for the administrators. It was really quite distressing.
'Each member of staff at the store was completely passionate about photography.
'I'm actually a photographer myself. I worked there because I genuinely liked it.'
The team's collective enthusiasm for their work made the news of their fate all the more devastating according to Mr Martineta, who said staff only learned of the chain's collapse when a journalist called the Warrington branch for a comment.
'It was really out of the blue,' he said. 'We had no warning.
'I've seen my colleagues crying, wondering how they are going to pay their rents.'
Mr Martineta said they were all hoping that their window display might encourage potential future employers to get in touch.
High street casualty: All 187 Jessops stores nationwide have ceased trading
Final days: Customers browse in the Bath branch of Jessops on the day before stores across the country closed their doors
Mr Martineta, who in the meantime intends to concentrate on his professional photographic work after losing his position at Jessops, said this latest retail casualty indicated a bleak future for the British High Street.
'When Comet went down I did pay it some attention, but it doesn't really hit you until it happens to you,' said Mr Martineta, adding that Jessops had struggled to compete with internet retailers.
'People were coming in for our expert advice, then using that to buy stock online,' he said.
'I do think we could have adapted better. It is a crying shame.
As Britain's only specialist camera retailer, Jessops had been a fixture on high streets nationwide for almost 80 years.
Its collapse followed that of a number of familiar high street names over the course of last year, including fellow camera retailer Jacobs in June 2012, and Comet in November.
Peacocks, La Senza and Clinton Cards also went under last year.
- Anyone who would like to get in touch with Mr Martineta and the other former members of staff at Jessops Warrington should contact plannyl@aol.com.
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