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HMV Closes Online Store

In a move that can only be seen as a cost cutting exercise, but all stores stay open.

After we reported the downfall of HMV yesterday, it looks like HMV is really starting to wind down its online operations until the issue of it being in administration is resolved. This issue is rumoured not to be a permanent move by the company but its administrator Deloitte has placed priority on in-store trade.

Currently the site will just take you to a web page that displays a “notice of administration” which informs site visitors of its suspended online status. Deloitte has released a statement saying “The website has been suspended following the appointment of the Joint Administrators. No purchases can be made until further notice”.

The chain, along with its Administrators are currently looking for a buyer to take on, what is not being classed as, the British institution. The shutting down of the website will be seen as a cost cutting exercise by most analyst in London to ensure that HMV minimalizes the debt they incur in this period.  

This is in contradiction to what business analysts say the company should do by closing most of its stores excluding its flagship ones such as the one on Oxford Road in London and concentrate in online sales.