HMV considers sale of live music business

HMV: mulls sale of live music division as losses mount
HMV: mulls sale of live music division as losses mount

HMV has reported a £36.4m pre-tax loss and said it may be forced to sell its live music division in order to stabilise its finances and continue trading.

The troubled retailer today (19 December) updated the market and disclosed that it had failed to improve trading, as it comes under pressure from internet and supermarket competition.

The company said: "The economic environment and trading circumstances create material uncertainties, which may cast significant doubt on the group's ability to continue as a going concern in future."

But the group said it was in constructive discussions with its banks over its finances.

In order to improve its finances, the group said its live music division, HMV Live, could be sold off, after a strategic review of its operations.

HMV, which sold the Waterstones bookstore chain earlier this year, reported its financial results for the 26 weeks until 29 October.

Its £36.4m pre-tax loss compares to a £27.4m loss for the same period in 2010.

The group has earmarked 40 of its stores for closure and to date has shut 26, leaving it with just 256 shops.

HMV has restructured its business and switched its focus to selling technology produtcs, such as headphones and iPads.

It said that it fitted 144 stores with an extended range of portable digital products.

In the seven weeks to 17 December, HMV retail like-for-like sales were down 13.2%

HMV has also copied Apple in formatting its stores, to offer customers a better consumer experience.

Commenting on the results, Simon Reed, HMV chief executive, said: "This has been a challenging start to the year. However, we have taken decisive action to restructure the business and are now seeing the benefits of this, particularly in our technology products business,

"Like all consumer-facing companies, we are facing tough trading conditions, but we continue to push forwards through this period. We remain well prepared for the key trading days ahead."

Follow John Reynolds on Twitter @johnreynolds10

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Oasis #springasmile digital campaign gets people doing good deeds
Coca-Cola: 'Don't approach bloggers with a fait accompli'
Tesco CMO Matt Atkinson: 'It is so important not to stereotype mothers'
McDonald's gives Ronald a new look ahead of global 'Fun times' social media push
In pictures: BrewDog opens first craft beer shop BottleDog for 'beer aficionados'
Facebook ad revenue leaps $1bn as it invests in targeting
Malteser or Maltesers? Mars takes Hershey trademark dispute to court
Apple Q2 profits top $10bn as iPhone sales soar
Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Tom of Finland's 'homoerotic' drawings made into stamps
Toyota achieves the impossible by calming angry Roman drivers
YouTube reveals user habits to appeal to 'older' marketers