British retailer HMV looks set to become the latest in a string of casualties on the high street.
Though it survived the initial purge which turned Virgin into Zavvi into a black hole, HMV has just posted a loss of £36.4 million and is considering selling off London music venues like the Hammersmith Apollo and Kentish Town Forum.
Sales in the 26 weeks up to the end of October dropped a staggering 17.6 percent. Shares fell 90 percent over the last year, according to the Guardian, while the company has debts of £163.7 million.
In an earnings call, HMV insisted that it will be able to keep chugging on. However, the Directors are talking to the Group’s banks and the economic downturn, twinned with the looming threat of a double-dip, “may cast significant doubt on the Group’s ability to continue as a going concern in the future.”
According to Sky, turning its attention towards selling technology products at the majority of its 252 stores, is helping. HMV claimed headphones, speaker docks and tablet computer sales were all on the up at 147 percent.
HMV’s precarious position poses yet more questions about how the traditional high street retailer can face up to stiff competition in the online sector, as companies like Amazon continue to dominate sales and more and more Brits flock to the web to shop.