Is this the end for HMV?

[Eine Alpensinfonie]

Anyway, worth being wrong, for that 73rd version, surely !!

Definitely, though I have yet to give it a spin.

[Dave2002]

Seems 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.

[Beef Oven]

Seems 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.

Although 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.

[jean]

They've decided to honour them now, haven't they?

Thing is, they've already had the money.

[Beef Oven]

They've decided to honour them now, haven't they?

Thing is, they've already had the money.

Good news.

[Dave2002]

Although 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.

Insolvency law is probably not generally well understood in the UK, as is also probate law. I don't know what the order of precedence is for paybacks/share out when bankruptcy occurs. Re probate one of the Kingdom TV programmes with Stephen Fry gave quite a succinct description of the rules, though I can't remember them and the programme has been wiped from our PVR. This is relevant when one or more people who think they're entitled to a significant inheritance discover that the estate in question has already been used for other purposes - e.g to secure loans etc.

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.

[Flosshilde]

They've decided to honour them now, haven't they?

Thing is, they've already had the money.

I think that those people with vouchers could be included in the creditors who would get a payout when the money was sorted out. I expect Deloitte realised what a horendous prospect it would be dealing with so many small claims.