HMV shuts Irish stores after receiver called in

DUBLIN, Jan 16 (Reuters) - Music and video retailer HMV closed its 16 Irish stores on Wednesday after a receiverwas appointed to assess their viability, a day after the companysought protection from creditors in Britain.

After years of struggling against competition from onlineretailers, supermarkets and download sites, Deloitte wasappointed administrator in Britain on Tuesday to try to salvagesome of its 223 British stores.

However the retailer requested on Wednesday that a receiverbe appointed to its Irish operations, which employs around 300people. Unlike administration, known as examinership in Ireland,receivership is not aimed at keeping the company operating as agoing concern.

While the retailer's British stores have remained open, anotice on the shut doors of its flagship unit on Dublin's mainshopping thoroughfare of Grafton Street said it was "closeduntil further notice."

"The receiver will institute an assessment of the viabilityof the company and its cost structure, including propertyoccupational costs. All efforts will be made by the receiver tosecure a purchaser for the stores," Deloitte Ireland said in astatement.

Retailers in Ireland's main shopping centres saw costs soarduring a national property boom that burst spectacularly in2008, sparking a financial crisis that pushed Ireland into anEU/IMF bailout and left the likes of HMV saddled with high rentsand collapsed demand for its products.

While Ireland has avoided returning to recession like muchof the euro zone, its mild economic growth is driven by robustexports with consumer spending set to contract again this year.