HMV has announced it will close its flagship Oxford Street store in March 2027, just three years after reopening the historic site, blaming a proposed doubling of rent. The closure will affect more than 50 staff, but the company says it is already searching for a new flagship location in London's West End and remains committed to maintaining a "significant presence" in the capital.
Rent hike and renovation costs make store unsustainable
According to HMV, the decision follows a proposed doubling of rent on the site at 363 Oxford Street, along with a bill for "substantial" renovation works. Together, these costs would make the shop "commercially unsustainable," the company said in a statement.
The retailer, which first opened the Oxford Street site in 1921, will transfer affected workers to its two other London stores and head office while it searches for a new site. HMV made a grand reopening of the store in November 2023 after a four-year absence, following a deal secured with landlords. The store had originally shut in 2019 after the retail chain went into administration and was forced to close shops and cut jobs.
Company rescued by Sunrise Records, still expanding
HMV was rescued from insolvency by Canadian Doug Putman's Sunrise Records business. Today, HMV operates 113 stores across the UK, including six sites under the Fopp brand, as well as another eight in Europe.
Phil Halliday, managing director of HMV, said: "This is a special store, it's where we began 100 years ago and bringing it back to life in 2023 was a big moment in our recent history. It's frustrating that it has been made commercially unviable. However, we are looking ahead, and our focus is now on what we do to make exciting steps for HMV in 2027."
Strong trading despite closure plans
The closure plans come despite robust trading, with like-for-like sales up 15 per cent across the group in the first nine months of 2026. Revenues for both shops and online trading are set to reach over £240 million this year, up from £212 million in 2025.
The group said it remained committed to high street stores. Mr Halliday added: "We hope to redeploy affected team members through other London stores and head office roles and are exploring ways to minimise the impact on jobs while we seek a new flagship site."
"We're actively looking for a new location in the West End and are determined to give London a store that music fans can be proud of," he added. The search for a new flagship site is underway, with the company aiming to maintain its presence in the West End district.
