The three major record labels – Universal, Sony and Warner Music – are working to put a rescue package together which they hope will stop the ailing high street retailer HMV from going out of business.
HMV confirmed its inevitable move into administration last week after months of falling profits, putting one of the UK’s last ‘traditional’ music outlets in serious danger of joining an ever increasing number of high street shops which have been forced to close their doors permanently during the last few years.
However, according to the Sunday Times newspaper, record labels are worried that the disappearance of a specialist music retailer would leave their artists at the mercy of the cost-cutting price wars of online stores and supermarkets – as one of source has apparently put it: ‘They don’t want their only choice to be Tesco or Amazon’.
The paper reports they are therefore quickly looking to assist HMV in emerging out of its financial strife by offering CDs and DVDs at reduced costs, as well as generous credit terms, while the chain works to recover from what has seemed to be a terminal decline.
HMV have confirmed that they will begin accepting gift vouchers again from tomorrow (Jan 22).