MUSIC retailer HMV, which has a store in Bradford's Broadway shopping centre, has gone into administration. 

The group, which trades from 130 stores and employs 2,200 staff,today appointed KPMG as its administrator. 

HMV’s 125 stores across the UK will continue to trade whilst negotiations are on-going with the major suppliers in the music and movie industries. Buyers are also being sought for the business as a going concern.

Paul McGowan, executive chairman of HMV and Hilco, said: “During the key Christmas trading period the market for DVD fell by over 30per cent compared to the previous year and, whilst HMV performed considerably better than that, such a deterioration in a key sector of the market is unsustainable.

"HMV has clearly not been insulated from the general malaise of the UK high street and has suffered the same challenges with business rates and other government-centric policies which have led to increased fixed costs in the business.

"Business rates alone represent an annual cost to HMV in excess of £15 million. Even an exceptionally well-run and much-loved business such as HMV cannot withstand the tsunami of challenges facing UK retailers over the last 12 months on top of such a dramatic change in consumer behaviour in the entertainment market.”

What happens to gift vouchers?

The failure of another major high street name before the year is up would cap a miserable 12 months for the retail sector.

The likes of Poundworld, Toys’R’Us and Maplin have all gone bust this year, while heavyweights Marks & Spencer and Debenhams have announced plans to shutter hundreds of stores.

Several others – including Superdry, Carpetright and Card Factory – have all issued profit warnings.

High street retailers have been slashing prices after brutal trading in November and early December failed to lure shoppers to stores.

Traditional retailers have been battling the rise of online shopping, higher costs and low consumer confidence as shoppers rein in spending amid Brexit uncertainty. 

Retailer Next, which has a number of stores in the Bradford district, is expected to begin 2019 with a downbeat Christmas trading update when it reports to the market next week as high street stores are braced for another year of turmoil.

Analysts at Jefferies forecast the fashion chain will downgrade its full-year profit guidance when it reveals festive figures on Thursday.

The broker expects the update to show a 12.7 per cent fall in store sales in the run-up to Christmas as mild winter weather and Brexit batter the firm.

Jefferies' James Grzinic explained: "The combination of mild weather and Brexit-induced UK consumer weakness is bound to have impacted Next's Christmas performance."

As a result, he tipped Next to cut its full-year profit guidance by three per cent.

Current guidance for annual pre-tax profit stands at £727 million but Jefferies is pencilling in a figure of £705 million, down from last year's £726 million.

Next's online arm is expected to record a sales rise of 10 per cent, according to Jefferies.