The Anonymous Widower

Robert Peston On HMV

Robert Peston has an interesting take on HMV’s demise in this article. He asks these two questions.

Will it go the way of Jessops and Comet? Will all 239 stores be closed, with the loss of all 4,000 jobs?

And is there a rising incidence of corporate insolvencies which could actually be a good thing, in the widest possible sense (please bear with me; I haven’t taken leave of my senses or transmogrified into some kind of insane company necrophiliac)?

It is his answer to the second that is most interesting.  Here’s part of it.

The evidence of past recessions is that economic growth doesn’t resume at any great velocity until unviable and inefficient businesses are put of their misery and excess capacity in various industries is eliminated.

Now, although there has been a fair old number of retailing collapses in the past year or so (according to FRP Advisory, HMV is the 32nd significant retail chain to go into administration in just over a year), there have been many fewer corporate collapses since the financial crisis of 2008 than was predictable on the basis of past economic experience.

I think he could be right.

When you clear out the living dead companies you create lots of niche markets, where those with ideas and money move in to create jobs and  revenue.

I think we’ll see a very different way of selling music evolve on the High Street. What it will be like, I do not know and I won’t even guess!

January 15, 2013 - Posted by AnonW | News | Music, Shopping