Winding up order would have cost HMV its Markets shop

HMV Guernsey Ltd could have forfeited its shop in the Markets if it had been wound up, the Royal Court was told.

HMV Guernsey Ltd could have forfeited its shop in the Markets if it had been wound up, the Royal Court was told.

But the administration order placed on it on Tuesday meant that it could carry on trading.

The court heard that HMV Guernsey Ltd originally paid £135,000 per year to rent the shop, but the figure was now £142,000.

Advocate Tim Corfield, who represented the parent company, HMV PLC Group Ltd, which made the successful application to the court, said the forfeiture clause was in the lease with landlord McAulay Developments Ltd.

Putting it into administration would enable it to keep trading as a going concern, which would be a more advantageous use of assets.