LONDON (CelebrityAccess MediaWire) — Trading of shares of the UK-based music, movies and electronics retailer HMV has been suspended after the company announced that it has gone into administration.
The company has been struggling with its debt burdens for some time and in December, revealed that it may be unable to make scheduled payments on bank loan agreements.
In a statement released by the company, a spokesman wrote: "The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection."
"[The board] understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business," the statement continued.
HMV, which launched in 1921, currently employs more than 4,300 staff and operates 239 stores in the United Kingdom, Ireland, Hong Kong and Singapore. The company however, has been struggling in recent years as buying habits continue to shift towards online retailers and in HMV has been selling off components of its business, including their live music division and the Waterstones book chain.
Accounting giant Deloitte has been retained to oversee the company's administration. – CelebrityAccess Staff Writers