HMV has finally admitted something the entire industry could see four years ago: it is pulling out of the U.S. market.

The chain issued a press release April 29 stating it would close its three remaining U.S. stores by year's end. Sources say two stores -- in New York's Harlem and Southpark, Ohio -- are holding going-out-of-business sales and likely will close by mid-May. That leaves the Fifth Avenue store in Manhattan.

It has been a long time since HMV was a factor in the U.S. marketplace. The sad thing is that the company could have been a contender.

A longtime New York-based distribution executive recalls HMV's U.S. launch in November 1990: "At the time, they really came into town to steal Tower's thunder. But what happened is Virgin (Entertainment Group) came in and stole HMV's thunder," he says. "HMV never really rose to the competition after their initial thrust."

In his view, HMV failed to conquer the States because the chain never altered its look or operating model, and it underwent too many personnel changes.

Another longtime distribution executive agrees on HMV's bravado. When the chain came to the States, it had the attitude that it was going to be "the biggest thing" in retailing, he says. "They were going to do it their way."