HMV is set to close its flagship Oxford Street store just three years after its comeback to the location where it was founded more than a century ago.
The music and entertainment retailer said the site will shut its doors in March next year, blaming a doubled rent bill and the cost of “substantial” renovations.
The departure of the historic outlet from Europe’s busiest shopping destination comes as retailers urge the government to help high street businesses weather soaring rents and taxes.
HMV opened its inaugural store on Oxford Street in 1921 but was forced to close the site in 2019 after the chain tumbled into administration.
The business was rescued by Canadian retail tycoon Doug Putman’s Sunrise Records when he bought 100 HMV shops, saving 1,500 jobs. 27 stores collapsed, costing 455 jobs.
HMV, which now operates at 123 locations across the UK, returned to Oxford Street in 2023 after securing a fresh deal with landlords. Putman had hailed the chain’s return as a “great moment” in its recovery.
But Phil Halliday, HMV’s managing director, announced on Monday that the company will be retreating from Oxford Street once again.
‘Frustrating’ setback for HMV
He said: “This is a special store, it’s where we began 100 years ago and bringing it back to life in 2023 was a big moment in our recent history.
“It’s frustrating that it has been made commercially unviable. However, we are looking ahead, and our focus is now on what we do to make exciting steps for HMV in 2027.”
The retailer said its recovery is gaining momentum despite this setback, pointing to the 15 per cent like-for-like sales growth it has achieved so far this year.
HMV is on track to notch £240m in revenue across its in-store and online estate this year, which would mark a 13 per cent improvement on last year’s £212m.
Halliday added: “We hope to redeploy affected team members through other London stores and head office roles and are exploring ways to minimise the impact on jobs while we seek a new flagship site.
“We’re actively looking for a new location in the West End and are determined to give London a store that music fans can be proud of.”