Nearly 30 shop workers at HMV stores in Aberdeen and Inverness are facing an uncertain future following the high street chain’s collapse into administration.
The music, film, games and technology retailer become the first high street casualty after Christmas over the weekend.
HMV operates from nearly 130 stores across the UK, including nine Fopp outlets, and employs 2,000 permanent staff.
It is understood that the Aberdeen store, in the Trinity Centre, has 16 employees, while the branch in Eastgate shopping centre in Inverness has 12.
All the shops are continuing to trade while administrators at professional services firm KPMG explore “options”.
It is the second time HMV has collapsed in recent years, having filed for administration in 2013, after which it was acquired by its current owner, Hilco.
Will Wright, partner at KPMG and joint administrator, said: “Whilst we understand that it has continued to outperform the overall market decline in physical music and visual sales, as well as growing a profitable ecommerce business, the company has suffered from the ongoing wave of digital disruption sweeping across the entertainment industry.
“This has been in addition to the ongoing pressures facing many high street retailers, including weakening consumer confidence, rising costs and business rates pressures.
“We will endeavour to continue to operate all stores as a going concern while we assess options for the business, including a possible sale.
“Customers with gift cards are advised that the cards will be honoured as usual, while the business continues to trade.”
HMV’s latest woes follow a string of corporate casualties in 2018.
One of the bigger names to go was Toys R Us, which entered into administration in February.
Insolvency specialist Moorfields sold off the toy retailer’s stock at knockdown prices and all 75 stores in the chain were shut by April 24, with 2,054 employees made redundant.
Electronics chain Maplin went bust on the same day as Toys R Us and all its stores ceased trading in June.
Poundworld vanished from UK high streets in August after a final round of store closures.
The discount retailer fell into administration on June 11, affecting more than 5,100 jobs at its 335 stores.
Sports Direct founder Mike Ashley brought House of Fraser back from the brink, after buying the company out of administration for £90 million in August, saying he wanted to turn the department store chain into the “Harrods of the high street”.
Debenhams, Marks and Spencer, Mothercare, Homebase and Carpetright are among retailers which have undertaken closure programmes of varying scales.