Deloitte’s Neville Kahn to lead HMV administration

Deloitte’s Neville Kahn to lead HMV administration

Kahn and two other Deloitte administrators called to struggling music retailer

DELOITTE ADMINISTRATORS have been called to struggling high street music retailer HMV.

A company statement has said the board believes it is unable to continue trading outside of an insolvency process.

Deloitte administrators, and partners, Neville Kahn, Nick Edwards and Rob Harding have been lined up.

Kahn and Edwards, along with Chris Farrington, were appointed joint administrators to electrical retailer Comet earlier this year and saw all stores close, about 236, as well as the loss of about 6,611 jobs. Kahn, who features as 34th on the Accountancy Age Financial Power List 2013, also worked post-collapse at Woolworths, which saw all its stores close in 2009 and the loss of about 27,000 permanent and temporary staff.

In December, HMV announced that due to tough market conditions and uncertainties it would probably fail to comply with its banking covenants at the end of January but added it was in discussions with its lender.

However, since then the company made the announcement that insolvency was imminent but said it believes the administrators will continue to trade the business while it seeks to obtain a buyer.

The Financial Services Authority has temporarily suspended HMV from the official list of AIM, pending clarification of the company’s financial position.

Sales from continuing operations were down 13.5% to £288.6m in HMV’s interim results for the 26 weeks ended 27 October 2012.

However, operating loss declined to £24.1m compared to £33.2m from the year before, with group loss after tax also reducing to £36.1m from £50.1m the previous year.

In August, the group announced that former Best Buy Europe chief financial officer Ian Kenyon would join the business in September. Best Buy Europe is a joint venture between Best Buy and Carphone Warehouse.

Related Articles

Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

4m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

5m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

5m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

5m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

6m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

6m Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

7m Emma Smith, Managing Editor
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

1y Emma Smith, Managing Editor