The New Old Age Blog: Officials Say Checks Won't Be in the Mail

The jig is up.

Two years ago, the Treasury Department initiated its Go Direct campaign to persuade people still receiving paper checks for their Social Security, Veterans Affairs, S.S.I. and other federal benefits to switch to direct deposit.

“At that point, we were issuing approximately 11 million checks each month,” or about 15 percent of the total, Walt Henderson, director of the campaign, told me.

After putting notices in every monthly check envelope, circulating public service announcements and putting the word out through banks, senior centers, the Red Cross, AARP and other organizations, the Treasury Department has since shrunk that number to five million monthly checks.

That means 93 percent of those getting federal benefits are using direct deposit or, if they prefer or lack a bank account, a Direct Express debit card that gets refilled each month and can be used anywhere that accepts MasterCard.

“So people have been getting the word and making the switch,” Mr. Henderson said. Now, federal officials are pushing the last holdouts to convert to direct deposit by March 1.

Although officials say the change is not optional, the jig isn’t entirely up. If you or your older relative does not respond to their pleading, “we’re not going to interrupt their payments,” Mr. Henderson said. But the department will start sending letters urging people to switch.

The major motive is financial: shifting the last paper checks to direct deposit or a debit card (only 2 percent of recipients go that route) will save $1 billion over the next decade, the department estimates.

But safety enters the picture, too. One reason some beneficiaries resist direct deposit, Mr. Henderson said, is that they fear their electronic deposits can be hacked or diverted. Having grown up in a predigital age, perhaps they feel safer with a check in their hands.

But they probably aren’t. In 2011, the Treasury Department received 440,000 reports of lost or stolen benefits checks. With direct deposit, “there’s no check lingering unattended in a mailbox,” Mr. Henderson noted.

The greater reason for sticking with paper is probably simple inertia. “It’s human nature to procrastinate,” he said.

But unless you or your relatives want a series of letters from the Treasury Department, it is probably time for the last fence-sitters to get with the program.

They don’t need to use a computer. People can switch to direct deposit, or get the debit card, at their banks or the local Social Security office. More simply, they can call a toll-free number, (800) 333-1795, and have agents walk them through the change. Or they can sign up online at www.GoDirect.org.

They will need:

1. Their Social Security number.
2. The 12-digit federal benefit number found on their checks.
3. The amount of the most recent check.
4. And, for direct deposit, a bank or credit union routing number, usually found on the front of a check. They can have direct deposit to a savings account, too.

A caution for New Old Age readers: If you think your relative has not switched because he or she is cognitively impaired and can no longer handle his finances, you can be designated a representative payee and receive monthly Social Security or S.S.I. payments on your relative’s behalf. This generally requires a visit to your local Social Security office, documentation in hand.

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Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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US, EU and Japan ground Dreamliners

Federal officials say they are temporarily grounding Boeing's 787 Dreamliners until the risk of possible battery fires is addressed. (Jan. 16)

With its new plane ordered to stay on the ground, Boeing Co. confronts a full-fledged crisis as it struggles to regain the confidence of passengers and the airline customers who stood by the 787 Dreamliner during years of cost overruns and delivery delays.

A second major incident involving "a potential battery fire risk'' prompted the Federal Aviation Administration on Wednesday to temporarily ground all 787s operated by U.S. carriers until it is determined that the lithium-ion batteries on board are safe.

The order affects United Airlines, which is the first U.S. customer. The FAA gave no indication how soon the plane could resume flying.

On Thursday, the European Aviation Safety Agency followed suit, grounding all Dreamliners in Europe.

Japanese airlines grounded their 787s Wednesday after an emergency landing and five days after the FAA and U.S. Transportation Secretary Ray LaHood declared that the flying public is safe on Dreamliners. When it offered those assurances Friday, however, the FAA also announced a comprehensive review of the 787's design, manufacture and assembly.

Ethiopian Airlines grounded its four 787s Thursday for "precautionary inspection."

The grounding represents a significant setback for Chicago-based Boeing, which is marketing the fuel-efficient, mainly carbon-composite jetliner as a vision of the future of commercial passenger aviation. The development of the plane was marred by long production and delivery delays, but it is selling well and has customers around the world.

"We stand behind its overall integrity. We will be taking every necessary step in the coming days to assure our customers and the traveling public of the 787's safety and to return the airplanes to service," Jim McNerney, Boeing's chairman and chief executive, said in a statement. He said Boeing is working with the FAA to find answers as quickly as possible.

Chicago-based United Airlines has six 787s, but it has been flying only one on flights between O'Hare International Airport and Houston. The airline said Wednesday night that it will accommodate customers on other planes. The domestic 787 flights were to end in late March, when United's first 787s were to begin serving international routes. 

United said it "will work closely with the FAA and Boeing on the technical review as we work toward restoring 787 service."

Foreign carriers are not affected by the FAA order, but LOT Polish Airlines canceled its inaugural flight celebration at O'Hare on Wednesday night, even before the flight landed from Warsaw.

"We just think it would be inappropriate to go ahead with the activities," said Frank Joost, regional sales director of the Americas for LOT. He described the FAA grounding of 787 flights as a "surprise."

LOT also canceled the Dreamliner's return flight to Warsaw. Passengers hoping to depart on the 9:55 p.m. flight said they were disappointed. Many were rebooked on Lufthansa through Munich.

Suzy Zaborek, 27, of Chicago was at Chicago O'Hare on Wednesday night waiting for her father to arrive from Poland aboard the 787. He came home early specifically to ride on the inaugural flight.

Zaborek had not been following the Dreamliner woes in recent weeks and the dramatic groundings on Wednesday.

"I'm glad I didn't know because I wouldn't have let him get on on of those," she said.

The FAA decision to ground all U.S.-registered 787s was the direct result of an in-flight incident involving a battery earlier in the day in Japan, FAA officials said. It followed another 787 battery fire that occurred Jan. 7 on the ground in Boston.

Both failures resulted in the release of flammable materials, heat damage, smoke and the potential for fire in the electrical compartments, the FAA said.

"Before further flight, operators of U.S.-registered Boeing 787 aircraft must demonstrate to the FAA that the batteries are safe," the regulatory agency said. The statement said the FAA will work with Boeing and airlines "to develop a corrective action plan to allow the U.S. 787 fleet to resume operations as quickly and safely as possible."

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Obama to unveil gun control plan in wake of school massacre

President Obama is expected to present a three-part plan to target gun violence in America.

WASHINGTON -- President Barack Obama will propose a new assault weapons ban and stricter background checks for gun buyers on Wednesday in a sweeping package of proposals to curb gun violence after the killing of 20 children and six adults in a Connecticut school last month.

Obama's agenda - shaping up as the most ambitious gun-control push in decades - will include executive and legislative action, with the latter sure to face an uphill battle in Congress where appetite for reinstating an assault weapons ban is low.

Obama and Vice President Joe Biden, who led a task force that made recommendations on the issue, will present the measures at a White House event attended by children from around the country who wrote letters to the president about gun violence and school safety.

Obama, who has called the December 14 massacre at Sandy Hook Elementary School in Newtown, Connecticut, the worst day of his presidency, said on Monday he would study the panel's ideas and move forward "vigorously" on those that he endorsed, including some actions he could take without congressional approval.

The announcement sets up a direct confrontation with the powerful National Rifle Association gun lobby, which is launching an advertising campaign against gun control and deploying its representatives in force on Capitol Hill.

The NRA, which says it has about 4 million members, took aim at Obama in a stinging TV ad, accusing him of being "just another elitist hypocrite" for accepting Secret Service protection for his two daughters but turning down the lobby group's proposal to put armed guards in all schools.

A White House official said Obama had not endorsed all of the ideas put forward by Biden's team but declined to lay out specifics on what would be announced.

"The president has made clear that he intends to take a comprehensive approach," White House spokesman Jay Carney said on Tuesday.

The president will ask Congress for a renewed prohibition on assault weapons sales that expired in 2004, a measure to ban high-capacity ammunition clips and the closing of loopholes in the background check system, Carney said.

The announcement, which comes the day after New York State lawmakers approved one of the toughest gun control bills in the United States and Governor Andrew Cuomo signed it into law, is set for 11:55 a.m.

Obama first major gun effort

Obama, until now, has done little to rein in America's gun culture. But just days before his second inauguration, he appears determined to champion gun control with a concerted drive for tighter laws and other steps.

But gun restrictions are a divisive issue in the United States, which constitutionally protects a citizen's right to bear arms.

Biden delivered his recommendations to Obama after a series of meetings with representatives from the weapons and entertainment industries. The president requested the recommendations after the Newtown shootings, which were carried out by a 20-year-old man who later killed himself.

The proposals are likely to touch on mental health and could address violence portrayed in video games.

Obama has signaled his plan would include elements that did not require congressional approval. The president could take action to ban certain gun imports and bolster oversight of gun dealers.

The proposals are likely to draw ire from the NRA, an influential lobbying group that is traditionally associated with Republicans. The NRA proposed having armed officials in schools throughout the country and has said the media and violent video games shared blame for the Newtown massacre, the second-deadliest school shooting in U.S. history.

"There is common ground" with the White House, NRA President David Keene said on the PBS Newshour on Tuesday. "It is not on banning rifles that we don't think will make any difference and it is not on setting up a national gun registry."

"We have for 20 years been asking that those people who have been adjudicated to be mentally, potentially violent be put on the list of people who are not allowed to buy firearms."

The NRA announced this week that it would produce a nightly one-hour cable talk show called "Cam & Company," which will be hosted by Cam Edwards, a gun advocate. The NRA also produces "Guns and Gold," in which values are set on old guns, and "3 Gun Nation," a shooting competition program.

Greg Valliere of the Potomac Research Group, a private firm that tracks Washington for institutional investors, wrote to clients on Wednesday: "Sweeping gun control legislation has no chance - none - of enactment; it won't even be considered by the House, and the Senate is lukewarm."

"Modest proposals, perhaps dealing with mental health and school safety, might have a chance," he wrote.

Reuters

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Leaked BlackBerry 10 sales manual reveals new images and details

The buzz continues to mount leading up to the January 30th unveiling of Research In Motions’s (RIMM) next-generation BlackBerry 10 platform, but we’re not sure how much is left to learn. Many BlackBerry 10 features have already been announced, we’ve seen RIM’s first two next-generation handsets — the BlackBerry Z10 and the BlackBerry X10 — a number times, and now Rogers’ internal sales manual for BlackBerry 10 devices has leaked thanks to CrackBerry. The manual is packed full of images and it also confirms some specs reported a few months ago, and the full document is embedded at the source link below. RIM’s next-generation operating system and handsets will be unveiled during a press conference on January 30th, and BGR will be on hand reporting live.

[More from BGR: Dell’s bold plan to reinvent itself: A USB-sized PC that gives access to Windows, Mac OS, Chrome OS]

This article was originally published on BGR.com

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Shane Carruth self-distributing “Upstream Color” to theaters in April

LOS ANGELES (TheWrap.com) – Director Shane Carruth has decided to take charge on the distribution of his second film, “Upstream Color,” which will open in New York at the IFC Center on April 5th.

His company, erbp, will follow theatrical distribution in 20 markets including Los Angeles, San Francisco, Seattle, Boston, Dallas, and Chicago with digital distribution through Cable VOD, iTunes, Amazon, YouTube, Hulu, Xbox, Sony Entertainment Network, VUDU and Netflix, as well as DVD/Blu-ray.

“As a filmmaker you try to make a compelling case for an audience to stick around minute by minute with what is on the screen,” Carruth said in a statement released on Tuesday. “By also crafting the marketing we’re still doing that, still storytelling, but we’re trying to make a case for an audience to show up. Hopefully for viewers, framing the film this way and staying true to the film’s intent makes it a bit more of an intimate relationship.”

The announcement comes ahead of the indie film’s January 21 U.S. Dramatic Competition debut at the Sundance Film Festival, where Carruth won the 2004 Grand Jury Prize for his first film, “Primer.”

Carruth stars alongside Amy Seimetz in “Upstream Color.” The movie’s mysterious synopsis reads: “A man and woman are drawn together, entangled in the life cycle of an ageless organism. Identity becomes an illusion as they struggle to assemble the loose fragments of wrecked lives.

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Phys Ed: Exercise Can Boost Flu Shot's Potency

Phys Ed

Gretchen Reynolds on the science of fitness.

As this year’s influenza season continues to take its toll, those procrastinators now hurrying to get a flu shot might wish to know that exercise may amplify the flu vaccine’s effect. And for maximal potency, the exercise should be undertaken at the right time and involve the right dosage of sweat, according to several recent reports.

Flu shots are one of the best ways to lessen the risk of catching the disease. But they are not foolproof. By most estimates, the yearly flu vaccine blocks infection 50 to 70 percent of the time, meaning that some of those being inoculated gain little protection. The more antibodies someone develops, the better their protection against the flu, generally speaking. But for some reason, some people’s immune systems produce fewer antibodies to the influenza virus than others’ do.

Being physically fit has been found in many studies to improve immunity in general and vaccine response in particular. In one notable 2009 experiment, sedentary, elderly adults, a group whose immune systems typically respond weakly to the flu vaccine, began programs of either brisk walking or a balance and stretching routine. After 10 months, the walkers had significantly improved their aerobic fitness and, after receiving flu shots, displayed higher average influenza antibody counts 20 weeks after a flu vaccine than the group who had stretched.

But that experiment involved almost a year of dedicated exercise training, a prospect that is daunting to some people and, in practical terms, not helpful for those who have entered this flu season unfit.

So scientists have begun to wonder whether a single, well-calibrated bout of exercise might similarly strengthen the vaccine’s potency.

To find out, researchers at Iowa State University in Ames recently had young, healthy volunteers, most of them college students, head out for a moderately paced 90-minute jog or bike ride 15 minutes after receiving their flu shot. Other volunteers sat quietly for 90 minutes after their shot. Then the researchers checked for blood levels of influenza antibodies a month later.

Those volunteers who had exercised after being inoculated, it turned out, exhibited “nearly double the antibody response” of the sedentary group, said Marian Kohut, a professor of kinesiology at Iowa State who oversaw the study, which is being prepared for publication. They also had higher blood levels of certain immune system cells that help the body fight off infection.

To test how much exercise really is required, Dr. Kohut and Justus Hallam, a graduate student in her lab, subsequently repeated the study with lab mice. Some of the mice exercised for 90 minutes on a running wheel, while others ran for either half as much time (45 minutes) or twice as much (3 hours) after receiving a flu shot.

Four weeks later, those animals that, like the students, had exercised moderately for 90 minutes displayed the most robust antibody response. The animals that had run for three hours had fewer antibodies; presumably, exercising for too long can dampen the immune response. Interestingly, those that had run for 45 minutes also had a less robust response. “The 90-minute time point appears to be optimal,” Dr. Kohut says.

Unless, that is, you work out before you are inoculated, another set of studies intimates, and use a dumbbell. In those studies, undertaken at the University of Birmingham in England, healthy, adult volunteers lifted weights for 20 minutes several hours before they were scheduled to receive a flu shot, focusing on the arm that would be injected. Specifically, they completed multiple sets of biceps curls and side arm raises, employing a weight that was 85 percent of the maximum they could lift once. Another group did not exercise before their shot.

After four weeks, the researchers checked for influenza antibodies. They found that those who had exercised before the shot generally displayed higher antibody levels, although the effect was muted among the men, who, as a group, had responded to that year’s flu vaccine more robustly than the women had.

Over all, “we think that exercise can help vaccine response by activating parts of the immune system,” said Kate Edwards, now a lecturer at the University of Sydney, and co-author of the weight-training study.

With the biceps curls, she continued, the exercises probably induced inflammation in the arm muscles, which may have primed the immune response there.

As for 90 minutes of jogging or cycling after the shot, it probably sped blood circulation and pumped the vaccine away from the injection site and to other parts of the body, Dr. Kohut said. The exercise probably also goosed the body’s overall immune system, she said, which, in turn, helped exaggerate the vaccine’s effect.

But, she cautions, data about exercise and flu vaccines is incomplete. It is not clear, for instance, whether there is any advantage to exercising before the shot instead of afterward, or vice versa; or whether doing both might provoke the greatest response – or, alternatively, be too much and weaken response.

So for now, she says, the best course of action is to get a flu shot, since any degree of protection is better than none, and, if you can, also schedule a visit to the gym that same day. If nothing else, spending 90 minutes on a stationary bike will make any small twinges in your arm from the shot itself seem pretty insignificant.

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Japanese airlines ground Dreamliners

Japan's two leading airlines grounded their fleets of Boeing 787s on Wednesday after one of the Dreamliner passenger jets made an emergency landing, the latest in a series of incidents to heighten safety concerns over a plane many see as the future of commercial aviation.

Shares in the Chicago-based Boeing Co. were down 4.4 percent in premarket trading on the news.

All Nippon Airways Co. said instruments aboard a domestic flight indicated a battery error, triggering emergency warnings to the pilots. Shigeru Takano, a senior safety official at the Civil Aviation Bureau, said a second warning light indicated smoke.

Wednesday's incident, described by a transport ministry official as "highly serious" - language used in international safety circles as indicating there could have been an accident -- is the latest in a line of mishaps -- fuel leaks, a battery fire, wiring problem, brake computer glitch and cracked cockpit window - to hit the world's first mainly carbon-composite airliner in recent days.

"I think you're nearing the tipping point where they need to regard this as a serious crisis," said Richard Aboulafia, a senior analyst with the Teal Group inFairfax, Virginia. "This is going to change people's perception of the aircraft if they don't act quickly."

ANA, which said the battery in the forward cargo hold was the same lithium-ion type as one involved in a fire on another Dreamliner at a U.S. airport last week, grounded all 17 of its 787s, and Japan Airlines Co suspended its 787 flights scheduled for Wednesday and Thursday.

The two airlines, which operate around half of the 50 Dreamliners delivered to date, said they would decide on Thursday whether to resume Dreamliner flights the following day.

COMPREHENSIVE REVIEW

The 787, which has a list price of $207 million, represents a leap in the way planes are designed and built, but the project has been plagued by cost overruns and years of delays. Some have suggested Boeing's rush to get planes built after those delays resulted in the recent problems, a charge the company strenuously denies.

Both the U.S.Federal Aviation Administration (FAA) and the National Transportation Safety Board (NTSB) said they were monitoring the latest incident as part of a comprehensive review of the Dreamliner announced late last week.

ALARM TRIGGERED

ANA flight 692 left Yamaguchi in western Japan shortly after 8 a.m. local time (2300 GMT Tuesday) bound for Haneda Airport near Tokyo, a 65-minute flight. About 18 minutes into the flight, the plane descended and made an emergency landing 16 minutes later, according to flight-tracking website Flightaware.com.

A spokesman for Osaka airport authority said the plane landed at Takamatsu at 8:45 a.m. All 129 passengers and eight crew evacuated via the plane's inflatable chutes. Chief Cabinet Secretary Yoshihide Suga said five people were slightly injured.

At a news conference - where ANA's vice-president Osamu Shinobe bowed deeply in apology - the carrier said a battery in the forward cargo hold triggered emergency warnings to the pilots, who decided on the emergency action. "There was a battery alert in the cockpit and there was an odd smell detected in the cockpit and cabin, and (the pilot) decided to make an emergency landing," Shinobe said.

In a statement later, ANA said the main battery in the forward electrical equipment bay was discolored and there were signs of leakage.

Passengers leaving the flight told local TV there was an odor like burning plastic on the plane as soon as it took off. "There was a bad smell as soon as we started and before we made the emergency landing there was an announcement and the stewardess' voice was shaking, so I thought this was serious," one passenger toldTBS TV.

Another man told a local broadcaster: "There was a strong, burning smell, but the smoke appeared after they opened the emergency doors, after we landed."

Marc Birtel, a Boeing spokesman, told Reuters: "We've seen the reports, we're aware of the events and are working with our customer."

Robert Stallard, analyst at RBC Capital Markets, said lost revenue at the Japanese airlines could prompt compensation from Boeing. "What started as a series of relatively minor, isolated incidents now threatens to overhang Boeing until it can return confidence, and this looks to be a near-term challenge given the media's draw to all things 787," he said.

UNDER REVIEW

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Police locate mother of boy found on streets of West Englewood

Police have located the mother of a young boy who was found running down the sidewalk in the West Englewood neighborhood overnight. (Chicago Police Department / January 15, 2013)

Staff report

9:11 a.m. CST, January 15, 2013

Police have located the mother of a young boy who was found running down the sidewalk in the West Englewood neighborhood overnight.

Police issued an alert after someone called police shortly before 11:30 p.m. Monday and reported finding the boy in the 7200 block of South Hermitage Avenue, police said. The mother arrived at the Englewood police station this morning and was speaking with detectives, police said.

"The tears are flowing," a police official said.

The boy, believed to be about 3 or 4 years old, was evaluated at a hospital and released into the custody of the Illinois Department of Children and Family Services. He was not able to tell police what his name is or who his parents are, Chicago Police Department News Affairs Officer Ron Gaines said.

The boy was wearing a black down coat, a red Nike hooded sweatshirt and a black winter hat with the word "Obama" on it. He was also wearing black and white Adidas gym shoes and blue jeans inscribed with the words "D.J. Bottoms," police said.

It was unclear how long the boy had been outside, police said. But despite the bitter cold -- it was 19 degrees at Midway Airport at 11 p.m., according to the National Weather Service -- the boy was determined to be in good condition.

chicagobreaking@tribune.com

Twitter: @ChicagoBreaking

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Tata Consultancy says demand in U.S. strong across segments

MUMBAI/BANGALORE (Reuters) – India’s top software services provider Tata Consultancy Services Ltd (TCS) said demand in the key U.S. market is strong across its business segments, with regional banks stepping up spending on technology.

The Mumbai-based company said on Monday that profit jumped 23 percent in the quarter ended December, beating analysts‘ expectations. TCS also gave an upbeat growth outlook, sending its shares up the most in more than eight months and prompting analyst upgrades on the stock.

Economic uncertainty in the United States had fuelled investor worry that clients may keep their IT budgets tight and postpone decision-making on technology spending.

“The U.S. is still a growth market,” Chief Financial Officer S Mahalingam told Reuters in an interview at his Mumbai office on Tuesday. “If it sneezes then we have got a big problem. (But) the demand is very good across all segments.”

The United States accounts for about half of TCS’ revenue, compared with more than 60 percent overall for India’s $ 100 billion outsourcing industry.

Banks, insurers and other financial services clients usually account for more than a third of the revenue at companies such as TCS’ rival Infosys Ltd , where better-than-expected results on Friday and an increased revenue outlook powered a 20 percent rise in its shares over two sessions.

“(The) U.S. economy has regional banks as well, and they are starting to spend. So there is growth,” Mahalingam said.

While Monday’s results prompted analysts from HSBC and CLSA to increase their ratings on TCS stock, some analysts said volume growth was not especially impressive.

Volumes, or billable hours, rose 1.25 percent on a sequential basis, while revenue in dollar terms increased 3.3 percent over the September quarter.

“The key disappointment was soft volume growth of 1.25 percent quarter-on-quarter. However, we remain assured by management’s optimistic outlook on FY14 growth,” Nomura analysts wrote in a note to clients.

(Editing by Tony Munroe and Ryan Woo)

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HMV’s future seen as handful of stores and website

LONDON (Reuters) – HMV, the 92-year-old British music retailer seeking protection from creditors, is unlikely to have much of a future beyond a rump of stores and the internet, if other recent retail failures are any guide.

After years of struggling as its core business of selling CDs and DVDs was hammered by competition from supermarkets like Tesco, online retailers like Amazon and download sites like Apple’s iTunes, HMV picked consultants Deloitte late on Monday to try to salvage some of its 239 British and Irish stores.

The decision, which puts 4,500 jobs at risk, is the latest blow to an industry which has seen a string of household names like Woolworths, MFI, JJB Sports and Comet fall by the wayside in a prolonged consumer downturn.

HMV, known for its Nipper the Dog trademark, will continue to trade while a purchaser is sought.

Chief Executive Trevor Moore, who only joined the firm in September, said on Tuesday he was confident it would emerge from the administration process in some form.

“We know that HMV is a well loved brand which has a high level of support amongst the public and we want to ensure that it remains on the high street,” he told reporters.

He had “a plan in mind” that would see the firm surviving with a stores presence along with a new digital and online offer, though he would not elaborate or say what the optimum size of the store estate should be.

SHAME

“It’s a shame, it’s been around so long. It’s like a bookstore – it’s nice to go and browse and feel them (CDs and DVDs), I’d miss it,” said Paul Wood, shopping at an HMV store in Canary Wharf, London.

However other shoppers, typifying HMV’s problems, said they were just looking before buying from cheaper outlets online.

Neil Saunders, managing director at retail consultancy Conlumino, said potential buyers could be interested in running the brand online or through some of its larger stores.

“I think it’s a good brand with a good emotional connection and I think someone will want it. And someone will be interested in acquiring a rump of stores because there are some that trade profitably within the group,” he told Reuters.

“A lot of the grocers have their own download services or mail order services so there could be interest from an existing player who just wants to use that name. Private equity may also see it as an opportunity.”

One that will not is U.S. private equity firm Apollo Global Management LLC. It holds some of HMV’s debt but ruled itself out of a takeover move on Monday.

The backing of suppliers – like music labels which look to HMV as one of the last major outposts for sales on shopping streets – has been crucial to the firm, and support remains.

“We are very supportive of them because they have been great trading partners,” said Universal Music, the world’s biggest music company.

But lenders and stakeholders were not prepared to strike another refinancing deal with HMV – whose 176 million pounds of debt as of October 27 dwarfs its market value of about 5 million.

“SEVERELY REDUCED”

“I think there is probably still some traction in having a presence on the high street but it would have to be severely reduced to be much more cost effective,” said Maureen Hilton at retail researchers Verdict. “There might be some attraction from investors if they can just pick which stores they have. Otherwise I think it will just become an online offer.”

Any residual presence online would see HMV following variety stores group Woolworths and rival entertainment group Zavvi.

Other collapsed retailers have managed to sell some stores, particularly to supermarket groups growing their convenience shopping businesses, though few have survived to trade under their own brands beyond a handful of outlets.

HMV, whose first store on London’s Oxford Street was opened by English composer Edward Elgar in 1921, grew to become a musical powerhouse, selling vinyl records, tapes and CDs to generations and had a hand in the Beatles’ big break, recommending the group’s demo record to publishers.

But it struggled to reinvent itself when its core markets went into decline, with expansion into live entertainment and books failing to change its fortunes and a recent push towards tablets and headphones coming too late.

In 2006 HMV’s board rejected an 842 million pounds bid from private equity firm Permira, saying it undervalued the group.

(Additional reporting by Kate Holton and Jonathan Cable; Editing by Mark Potter)

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