UPDATED: HMV Castlepoint to close (From Bournemouth Echo)

UPDATED: HMV Castlepoint to close

10:26am Thursday 7th February 2013 in News

HMV at Castlepoint will close after being named as one of 66 loss-making stores across the UK by administrators.

The news came yesterday and Deloitte said the earmarked branches employed 930 people.

It has not given numbers for each branch or said whether any staff would be redeployed. It is thought the Castlepoint store employs around 15 to 20 people.

The stores in the Avenue Centre, Bournemouth, and Poole’s Dolphin Centre will stay open.

Deloitte said the shops marked for closure would continue to trade but the closures were expected over the next one to two months.

Nigel Hedges, president of Bournemouth Chamber of Trade and Commerce, said: “Five million cars a year go to Castlepoint, so for this particular branch you cannot blame lack of footfall, which is punishing all high streets in all town centres.

“It’s always a shame to lose a high street retailer and although buying habits of music have changed dramatically, if you have five million people outside your stores like at Castlepoint you should be trading profitably.

“The tragedy across all groups like HMV is the financial structure of the company nationally, linked with local rents and rates, will make the bean-counters draw the red line through a particular store.”

Administrator Nick Edwards said the shops had been identified as part of an ongoing review of the company’s financial position and the group still hoped to secure a future for the restructured business.

He said: “This step has been taken in order to enhance the prospects of securing the business’s future as a going concern.

“We continue to receive strong support from staff and are extremely grateful to them for their commitment during an understandably difficult period.”

The group, which currently has 220 UK stores, including Bournemouth’s Avenue Centre and Castlepoint and Poole’s Dolphin Centre, called in the administrators last month.

Hopes of a rescue deal have been raised after restructuring firm Hilco – the group behind HMV Canada – bought the company’s debt.

Castlepoint manager Peter Matthews declined to comment.