HMV staff stage sit-ins as 16 stores close and 300 jobs lost
The outlets at the Crescent Shopping Centre and in Cruise’s St, which between them employ 26 staff, were two of 16 HMV stores closed suddenly yesterday as the Irish arm of the retailer went into receivership.
The staff in the two Limerick shops said they wanted the receivers Deloitte to provide assurances they will receive all their entitlements.
Dervla Peters, who works in the Cruise’s Street branch said staff would stay there until they got the written guarantee of at least their month’s wages.
She and the manager in the Crescent Shopping Centre branch said staff were angry that successful stores here were being shut while the outlets continued to trade in Britain.
A move into receivership is more serious than the administration process which is in place in Britain and raises further concerns for the jobs of 300 people employed by HMV here.
In a statement, Deloitte Ireland confirmed that one of its partners, David Carson, had been appointed receiver to HMV Ireland Ltd following a request from the directors of the company to the banks.
“The company’s stores have been closed by its directors. The receiver 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,” said a statement.
In a day of confusion surrounding the retailer here, British administrator Deloitte first stated that the Irish arm was not in administration or examinership.
The National Consumer Agency also confirmed this following a meeting with HMV and Deloitte.
As a result, it issued a statement questioning why gift vouchers were not honoured in Irish stores on Tuesday and called on HMV (Ireland) to honour its contracts with consumers and accept all gift vouchers.
However, later in the morning, it emerged that all 16 HMV stores in Ireland had closed “as a short-term measure” but would reopen “sooner rather than later”.
A second statement from the consumers’ association said it had been informed by HMV Ireland that it was “currently not trading, pending clarification of their legal position and advice from their solicitors”.
This was followed by a statement from Deloitte confirming it had been appointed receiver to the Irish arm of the company.
Last month, chief executive Trevor Moore said HMV was in talks with banks over its future.
Mr Moore said on Tuesday that he was confident a buyer could be found.
It is understood there have already been expressions of interest in the retailer. Private equity firm Endless LLP said it has been in contact with Deloitte with a view to buying HMV.
