HMV to close flagship Oxford Street store due to soaring rent

HMV has announced plans to close its flagship Oxford Street site next March, citing a proposed doubling of its rent demands.

The high street chain said it would leave the shop in March next year in a move impacting just over 50 staff.

The entertainment retailer confirmed it will vacate the premises, but is searching for a replacement location in London’s West End district for a new flagship branch as it vowed to maintain a "significant presence" in the capital.

The business said landlords have proposed doubling the rent at 363 Oxford Street, while it also faces a bill for "substantial" renovation works, rendering the store "commercially unsustainable".

HMV is planning to transfer affected staff to its two other London branches and head office while it searches for a new site.

The historic location was brought back to Oxford Street in November 2023 following a four-year hiatus, after a deal was struck with property owners.

HMV had closed the shop in 2019 when the company entered administration, leading to store closures and job losses.

The retailer – which first opened at the site in 1921 – was rescued from insolvency by Canadian businessman Doug Putman’s Sunrise Records.

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."

The chain currently runs 123 stores across the UK.

It stated that the decision to close the Oxford Street branch comes despite strong trading performance, with like-for-like sales increasing by 15 per cent across the group in the first nine months of 2026. Revenues across physical shops and online operations are expected to top £240 million this year, up from £212 million in 2025.

The group affirmed that it remains fully committed to physical 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.