HMV has suspended its new store openings across the UK as it claims the upcoming tax rises has made it too risky to invest.
Owner Doug Putman told The Telegraph he does not see the music chain opening any new shops in 2025 after previously targeting between five and 10 each year.
He blames the move solely on the Budget and claims the country will be missing out on as much as £5m annual investment.
Putman, who rescued the chain in 2019, said: “We would love to continue to open stores, but I think obviously with the Budget, there are some worries and some concerns.
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“When we look at next year, we’ve got everything on pause so we could end up opening five stores. but I think more than likely we’re not. I think we’re probably getting close to zero.”
He added: “The cost to do it now and the risk that you take for every store has just become that much greater, so that in a lot of cases it’s not worth the risk.”
Putman also warned of potential jobs at HMV following the Chancellor’s decision to increase employers’ national insurance contributions.
“I would be surprised if we could find a way to get through this without cutting jobs,” he told The Guardian. He said retailers took on extra staff for Christmas and often kept some on permanently, but the industry was “probably not going to see as much of that this year”.
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