Multinational Retail Group HMV Enters Administration Due to Suffering Economy

The down British economy claimed yet another victim, this time music retail chain HMV.

The multinational retail group announced Tuesday that it had entered administration, the UK equivalent of bankruptcy. The 111 year old company was unable to strike a deal with its creditors regarding outstanding debts, so now it will be overseen by new administrators. This all comes at a time when many music retailers are struggling because of online competition like iTunes and Amazon.com, as well as a general downturn in the economy.

HMV, which stands for His Master’s Voice, is known by its logo in which a dog listens to a gramophone, unable to tell the difference between the high quality recording and his master’s actual voice (hence the name). After hitting a record high in 2005, the company’s stock price has fallen 99%, a drop that may lead to new ownership in the near future.