HMV’s flagship Oxford Street store has a future

HMV’S flagship store on Oxford Street is highly profitable and likely to survive any potential rescue deal, figures obtained by the Evening Standard suggest. But its loss-making shop in Piccadilly’s Trocadero is tipped to close.

The 92-year-old retailer collapsed into administration on Monday by appointing Deloitte, and the accountancy firm has received more than 50 initial expressions of interest in HMV, although the number of serious bidders will be much lower.

If HMV survives as a going concern a “white knight” will probably want to keep its London flagship store, which makes annual profits of about £1.3 million. However, the outlook is far more uncertain for HMV’s shop in the Trocadero which loses around £700,000 a year.

Deloitte continues to trade HMV’s 223 stores in the UK, while it seeks a buyer. It is understood the restructuring companies, Hilco UK and Gordon Brothers, and the turnaround private-equity firms Endless and Better Capital, are interested in acquiring parts of the entertainment group.

Video games retailer Game is also eyeing up to 45 of HMV’s stores. Game was itself acquired last year out of administration by Opcapita, an investor in distressed businesses.