Deloitte appointed as receiver to HMV

HMV has appointed Deloitte as receiver in the Republic in a move which has put the jobs of 300 employees in 16 shops in the State at grave risk.

The company, which has also gone into administration in the UK, issued a statement on Monday night saying it would continue to trade as normal while it sought a buyer. However , it closed all its Irish shops yesterday morning.

A HMV spokesman initially said the Irish shops would remain closed “as a short-term measure” but would reopen “sooner rather than later”. However when confirmation came of a receiver, the directors said the stores had been closed and there was no suggestion they would reopen.

Deloitte Ireland partner David Carson is to act as receiver and “will institute an assessment of the viability of the company and its cost structure, including property occupational costs. All efforts will be made by the receiver to secure a purchaser for the stores,” the company said.

HMV was accused yesterday by the National Consumer Agency of misleading Irish consumers with its announcement earlier this week it would stop accepting gift vouchers with immediate effect even though only the UKbusiness was in administration.

‘No basis’ for voucher refusal

In a statement before HMV announced the appointment of a receiver, the agency said “there was no basis for HMV Ireland refusing to honour gift vouchers, as the company is not under the protection of the administration or examinership process, despite what was indicated by the company to Irish consumers”.

Minister for Enterprise Richard Bruton ruled out any changes to gift card legislation. A spokesman said that under Irish law, the holders were unsecured creditors and would only be paid once money owed to Revenue and employees was paid.

About a dozen employees staged a sit-in at a HMV branch in Limerick last night as they sought assurances from the receiver over wages.

A charity which released a song before Christmas to raise money for a young girl with cancer has not been paid €27,000 by HMV for sales of the record across its Irish shops. Producer of A Song for Lily-Mae Stephen Macken said HMV had been invoiced but had yet to pay.

He said receivers were “acutely aware of the sensitivity of the situation”.