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

Marketing directors need to step outside 'marketing box' to earn seat on the board
Hottest virals: Burger King’s emotional gay pride Whopper ad, plus Apple and Guinness
Developer creates software enabling Google Glass mind-control
Kick-ass girl beats up shopping centre staff in video for Royal Blood
Sony relives Germany's 7-1 victory against Brazil in Subbuteo Vine
Burberry credits 9% revenue hike on strong online sales and 'more targeted marketing'
Ritz returns to UK TV screens after 30-year hiatus
Mars creates chief health and wellbeing officer role
Brands make the most of Germany's dramatic victory over Brazil
Adios Justin King! Watch our video tribute as he leaves Sainsbury's after a decade
Nike calls time on 13-year Manchester United kit deal
Three TV ad banned over misleading 'free' call claims
GNM boss David Pemsel: 'The Guardian has got its mojo back'
M&S has missed a massive opportunity to put digital strategy at its heart
Google partners with the Barbican to show coders are artists
Samaritans encourages men to talk about issues with #DownNotOut campaign
Lego's partnership with Shell 'not awesome', according to Greenpeace viral
Chevrolet launches £350m Manchester United shirt deal with nostalgic video
Warburtons rebrands to 'Warbeartons' in Paddington Bear movie tie-up
M&S blames new website as non-food sales fall again
Top 10 skills for young creative talent: The Mad Men era of on-the-job learning is long gone
Pepsi Max calls on fans to take part in Kelly Rowland video
From mutton chops to manscaping, Gillette takes a trip through 100 years of male grooming
Digital democracy creation: how the marketing industry made its voice heard
Three prints spoof apology letter to hapless holiday-less consumers
Sponsors congratulate Novak Djokovic on Wimbledon win
Cristiano Ronaldo launches CR7 fashion range and website
How eBay drove awareness of The Amazing Spider-Man 2 for Sony Pictures
Lidl plots 'more British' brand in drive for customers
WeChat-owner Tencent on China's impact on international marketing - not vice versa