HMV Oxford Street store closure: chain blames proposed rent doubling

HMV will close its flagship Oxford Street shop in March 2027, just over three years after reopening it, saying landlords have proposed doubling the rent. The HMV Oxford Street store closure, announced on Monday, affects just over 50 staff at 363 Oxford Street, the site where the chain first opened in 1921.

The company said the higher rent, combined with a bill for “substantial” renovation works, would make the shop “commercially unsustainable”. It is looking for a new flagship in London’s West End and says it will keep a “significant presence” in the capital.

What HMV said about the flagship closing

Phil Halliday, HMV’s managing director, 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.” He added that the company’s focus is now on “what we do to make exciting steps for HMV in 2027”.

The shop has a short second life behind it. HMV closed it in 2019 when the chain went into administration, and it was rescued by Canadian businessman Doug Putman’s Sunrise Records. According to City AM, Mr Putman bought 100 HMV shops, saving 1,500 jobs, while 27 stores collapsed at a cost of 455 jobs. The Oxford Street store reopened in November 2023, after a four-year absence, following a deal with landlords.

HMV said it would look to move affected staff to its two other London stores and its head office. “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,” Mr Halliday said.

HMV says trading is strong, but rent is the sticking point

HMV stressed that the closure comes despite healthy results. It said like-for-like sales across the group were up 15% in the first nine months of 2026, and that revenue from shops and online is set to pass £240 million this year. These figures are supplied by the company.

On those figures, revenue is on course to rise by at least £28 million, or about 13%, which matches the figure City AM reported. As an illustration of what HMV says is proposed, a shop paying £100 in rent today would be asked for £200. HMV did not give the actual rent in the reports we reviewed. The landlords are not named in those reports, and none of them carried a response from the landlords, so their side of the negotiation is not known.

City AM noted that the announcement comes as retailers urge the government to help high street businesses with rising rents and taxes. HMV itself said it remains committed to physical high street stores. Reports differ on the size of its estate: Wales Online put it at 113 UK stores, including six under the Fopp brand, plus eight in Europe, while The Independent, City AM and the Express said 123 in the UK.

What happens next

The shop is due to close in March 2027, so the immediate questions are for the 50-odd staff. HMV says it hopes to redeploy them to its other two London stores and head office roles, but has not said how many posts are available. It has described the plan as an aim, not a guarantee.

The larger question is where the next flagship goes. The reports we reviewed name no site, timetable or budget, with HMV saying only that it is “actively looking for a new location in the West End”. Mr Halliday said the company is “determined to give London a store that music fans can be proud of”. Until a site is confirmed, HMV’s London presence will be its two other stores in the capital.