Originally posted by teamsaint
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Is this the end for HMV?
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Beef Oven
Originally posted by Dave2002 View PostSeems at least that they (HMV) might honour their gift cards. Those other companies which in recent months haven't done this - e.g Comet - seem a total disgrace to me - and suggests something very close to theft.
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Originally posted by Beef Oven View PostAlthough it seems wrong, HMV are broke and therefore don't have the money to back the vouchers up and revenue can't really be used.
In the case of Comet I thought it was totally wrong that they weren't honouring gift cards - "they have already had the money". If there really isn't any money, then obviously that's impossible, but I'd want to be sure that the (former) directors hadn't salted it away somewhere, perhaps off-shore.
Trading while there is a possibility of insolvency is (technically) illegal in the UK, but many firms do it. Some may survive, but some do manage to drum up new business and take deposits etc. to offset losses when internally it must be known that they are going to go under. We have been victims of such a strategy ourselves in recent years.
Effective auditing and promises by the FSA and even various forms of "insurance" seem often to be totally ineffective in such cases.
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Originally posted by jean View PostThey've decided to honour them now, haven't they?
Thing is, they've already had the money.
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