Mainly For Brummies But All Are Welcome To Join In The Birmingham Fun & Chat
RE: HMV IN ADMINISTRATION - 2
This is the place where Brummies come to chat about Birmingham old and new along with anything else that interests us.
We have Quizzes, Pizzas, Local History, News, Politics, Wedding Cake, Plum Pudding, Champagne, Easter Eggs and, above all, Respect for our fellow members.
Quote: denise wrote in post #19Its all the on line stuff thats doing it.
Very true Den, thats what HMV blamed. Not forgetting of course that HMV have had a very big online webite flogging their wares for ages. I wouldn't be surprised to see HMV survive as "online only". That's what Woolies did. All the shops went, all the staff went. The business survived. NO SOCIAL CONSCIENCE.
Administrators charge very large sums of up to around £500 per hour for senior staff. They can also make a business profitable whilst they are running it and so pay for themselves and keep some employees in work. If they are successful the business can be sold on and creditors get some pence in the pound back.
Don't forget it is the original management who failed the business, it is they that spent more than they made, alienated customers, misjudged the market or had delusions of grandeur. Don't blame the more successful businesses and certainly don't blame the administrators and liquidators who are a legal requirement for limited companies who find themselves unable to meet their obligations.
, Thu Jan 17, 2013 9:43 am
Liquidators don't do anything special, they just collect in money that is owing that the business was unable to get the debtors to pay up, the liquidators having extra powers. They sell off plant and equipment and get rid of staff, and sell off profitable parts of the business, also they are in front of the taxman and the vatman when it comes to getting paid.