4,000 jobs at risk as HMV goes into administration

In the latest devastating blow to retailing, HMV called in the administrators, putting more than 4,000 jobs at risk in its 238 shops including the nine Fopp entertainment stores.

It's just a fortnight into 2013 but the ailing music chain has now joined the failures of Jessops and Comet which between them put 422 stores and 8,000 jobs under the axe.

That's 12,000 jobs at risk in the space of less than a month on the high street alone and the loss of 92-year-old HMV - like the collapse of Woolworths in 2008 - marks the end of an era.

HMV's outlets will remain open while administrator Deloitte tries to find a possible buyer for some or all of the business but store closures are almost certain.

Vouchers and gift cards, many of which were given as Christmas presents, could end up worthless, prompting a Which? spokeswoman to warn consumers to read the small print on future warranties and gift vouchers.

Before Christmas HMV boss Trevor Moore said that the group was facing a tough time with cheaper competition from internet retailers and supermarkets.

However Fopp stores - two in London, two in Glasgow, one each in Bristol, Cambridge, Edinburgh, Manchester and Nottingham - offer good value.

Labour's shadow business secretary Chuka Umunna said: "For the sake of HMV's employees, we hope a way can be found to keep the business going.

"The demise would be a sad loss to British retail."