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HMV Administration


Al94
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Been predicted for a while but looks likely tomorrow http://www.ft.com/cms/s/0/c4096aee-5e82-11e2-a771-00144feab49a.html#axzz2Hz53czjx More imminent store closures and job losses.

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Quickbeam

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On the non-honouring of gift vouchers:

Five Live was talking about it last night and a financial expert proclaimed that the voucher holders were non-secured creditors, which is why they won't get anything back.

There was also the feeling that although the sales of them were still made until the eleventh hour so as not to announce to the world an imminent company collapse, and that technically it is fraudulent trading as the directors knew they would not be honoured. The excuse offered by the directors would be that they believed that they were still going to save the company up until the appointment of administrators, and therefore were not trading fraudulently (well, they would say that, wouldn't they).

It seems to me that a change in the law is required so that in future any credit voucher holders do get a full refund on account of the fact that they fall into this grey area of maximum risk that is to the great benefit to all the other secured creditors that have no further risk. They should by default in law become a secured creditor in cases of companies going into administration.

Or as fm pointed out, the collapse of the entire credit voucher business will follow shortly.

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Al94

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One man's stand against HMV http://tinyurl.com/adelgub

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Al94

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Link didn't work, try this http://tinyurl.com/aqmlr72

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Quickbeam

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Which is why people that put money into a companies coffers without receiving the goods in the immediate short term, should have some default creditors protection in law.

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Quickbeam

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30 days protection would probably be an acceptable compromise to all parties.

That would protect customers from the Christmas peak voucher sales period into the most likely period that retailers seem to go bust. It would give directors a legal way of still being able to sell the vouchers without being accused of fraudulent trading. And the major creditors still get a reasonable chance of getting more of their money back if the company can trade a little longer without an administration scare frightening customers away at the drop of a hat.

In my experience most young people cash their vouchers in pretty quickly.

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namtas

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There was also the feeling that although the sales of them were still made until the eleventh hour so as not to announce to the world an imminent company collapse, and that technically it is fraudulent trading as the directors knew they would not be honoured.

The practise is rife but not just with fairly low value vouchers, in the past it has been alleged that Airlines have taken deposits right up until the 11th hour and I am aware personally of one major furniture chain who continued taken orders with deposit up until the administration announcement.

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spuds

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I have often stated that the administration laws in this country mount to the point of a joke on quite a number of issues.

The problem is as stated by the person in the link who took action upon himself in regards to 'paid for vouchers'. People tend to get convinced that there is nothing they can do, except perhaps break the law, by stealing things them self (taking goods without accepted payment).

Over the past few years, there have been a number of increased incidents regarding not honouring vouchers, credit notes, tokens, promises and that included once well known high street traders, doing exactly the same thing.

The other point to consider, is that some of these companies (big or small) are very deep in debt, and the director's may well know this. Yet they will still make and take decisions that may benefit them self, and not the customer. And the law allows them to do this.

If HMV do cease to trade completely, because a buyer cannot be supposedly found, who will pick up the previous wage bill, or even the settlement of any redundancy payments, I suppose that will fall on the taxpayer. I appreciate that some companies pay an awful lot of tax, but others seem to get away with paying very little, compared to the profits that can and are being made in some form or manner?.

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john bunyan

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We have given vouchers in the past, as somehow, irrationally in some ways , they seemed more personal than a cheque. We gave vouchers for Threshers to a wine lover, but we lost out and sent a cheque instead when they went bust. We did, cautiously, send Waterstones vouchers to a book lover this last Christmas.In view of Jessops, Threshers,HMV I think we will adopt the cheque route in future, even if it seems less personal in some ways.

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Armchair

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All I know is that I definitely won't be buying anything from any HMV store until they allow me to use my remaining credit.

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SillBill

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Local Tesco STILL had HMV gift vouchers on display yesterday at the same time as police were called to the local HMV store to prevent furious punters venting their anger at staff who were refusing to accept any vouchers!

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