HMV shops will not honour vouchers

HMV stores in Ireland will remain closed and will not honour gift vouchers despite them now being accepted in Britain.

It was announced yesterday that HMV administrators in Britain have bowed to public pressure and will accept gift vouchers for the collapsed music retailer.

However, as HMV Ireland is in receivership, viewed as a more serious process, it has confirmed it will not honour any outstanding vouchers. Despite HMV continuing to sell gift cards until the day before the chain collapsed on Jan 15, administrators Deloitte stopped accepting them once appointed to the British business last week. This was also the case in the Irish shops, despite they not being a part of the same process.

The following day HMV Ireland closed its shops before confirming it had gone into receivership and would not honour any outstanding gift vouchers.

In a statement issued yesterday evening, the National Consumer Agency’s acting chief executive Seán Murphy said the organisation had upgraded the status of its inquiry into HMV Ireland’s activities to that of an investigation, primarily focussed, but not limited to, the events of Jan 15.

“We are engaging with consumers who have contacted us, and NCA officers are currently in the process of gathering relevant material. The NCA are currently seeking a decision from the receiver as to whether Irish voucher holders will be afforded the same opportunity as that afforded to UK voucher holders,” he said.

Sit-ins at HMV shops in Cork, Limerick, Swords, and Tallaght ended at the weekend after receivers Deloitte promised staff they would be paid what they are owed. It is believed HMV’s Irish employees have been put on temporary lay-off pending a future decision by the receivers. The workers have said they hope their jobs can be saved under a new management team.

Meanwhile, British administrator Nick Edwards said Deloitte was still assessing the longer-term options for the business and was hopeful the process would result in the business continuing as a going concern.

Entertainment giants including Universal Music, Warner Music, and Sony are planning to offer potential buyers for HMV generous credit terms and cut the price of CDs and DVDs to help keep the chain’s presence on the high street.

A salvage company, Hilco, has been in talks with the administrators in Britain. It already owns HMV Canada and has so far made a success of the business there.