Gift cards accepted while HMV trading
Retail giant HMV will continue to accept customers’ gift cards so long as stores keep trading, administrators have confirmed.
It comes after the High Court appointed KPMG to run the music retailer, which collapsed on Friday for the second time in six years after a sharp fall in sales.
In 2013, administrators faced an angry backlash after initially telling customers their gift vouchers would not be honoured – before making a U-turn.
KPMG says it will try to keep all 125 stores open while a buyer is sought.
They include stores in Shrewsbury, Telford, Wolverhampton, the Bull Ring in Birmingham and at intu Merry Hill shopping centre in Brierley Hill.
Worrying
Will Wright of KPMG said: “Over the coming weeks 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.”
Speaking before the appointment of administrators, Alex Neill from Which? said: “It’s a worrying time for everyone when a company goes into administration but for customers, it’s important to remember that your consumer rights may be affected.
“If you have recently bought anything from HMV, you may not be able to claim a refund or exchange the item if the company ceases trading.
“If you have gift vouchers you should try to spend these in-store as soon as possible.
“If you are planning to shop in HMV and intend to buy something worth more than £100, make sure you use a credit card as you’ll be able to make a claim against your credit card company under Section 75 of the Consumer Credit Act if anything goes wrong.”
High business rates, weak consumer confidence and the rise of online streaming services have all taken their toll on HMV.
Paul McGowan, the executive chair of HMV, said the decline in the CD and DVD market across the UK had made the trading situation impossible.
