News Article

UK Supermarket Chain Asda Preparing a Bid for HMV

Posted by Thomas Whitehead

Around 120 stores could remain

Earlier in the year we reported that the UK and Ireland retail firm HMV had gone into administration, the latest embattled high-street chain to do so. Although best known in the past for selling music, its stock has diversified to other areas such as video games, making it one of the most prominent high street sellers for the game industry that remains in the region.

Since moving into administration, HMV has been continually seeking buyers and, in the process, shutting down a number of stores nationwide. The search for new owners is now becoming critical, as rent is due for the company's remaining 120 stores at the end of March, and it's believed that a buyer must be found before those bills arrive.

Retail group Hilco has been the front-runner to date, but supermarket behemoth Asda — owned by Walmart — is reportedly entering the race to buy the famous retailer. According to The Sun, a city insider claims that Asda is interested in continuing the brand as a presence on the high street.

Asda has been looking at HMV and it’s not about taking on a few stores to convert into supermarkets. They’ve been looking at taking on the brand — the business.

As one of an increasingly small number of high-street retailers that still has a sizable video game section in stores, HMV's survival would be welcome for gamers that buy there and, of course, could help to save a lot of jobs. We imagine that Asda — if the reported interest is true — and Hilco will run it tight to finalise any deals, so we'll have to wait and see what fate befalls the company in the coming weeks.

As always, we wish the best of luck to any staff affected.

[via gamesindustry.biz, thesun.co.uk]

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User Comments (7)

THENAMESNORM

#1

THENAMESNORM said:

Asda have been trying to increase their share in the entertainment sector for a while now and I think this would be great news! I really hope HMV come through this as there are so few places on the high street nowadays that have the sheer variety in electronic entertainment that they offered!

McHaggis

#2

McHaggis said:

Interesting how they're interested in keeping the brand. I wonder if that is so prices between the two brands can remain separate. Asda would be able to keep their loss leaders whilst HMV have the high street price.

Bulbousaur

#3

Bulbousaur said:

This is good news. Asda have relatively cheap games, albeit a limited selection in their supermarkets. Hopefully this means we'll get a dedicated game retailer with actual decent prices. Plus, since Asda is owned by Walmart, they're basically rolling in money.

misswliu81

#4

misswliu81 said:

i'd be in support of this idea, as long as it means cheaper prices for games. of course it would be much cheaper online, but if it gets people to buy games instore, then it means you don't miss out on the retail shopping experience of going into shops and buying games.

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