Struggling retailer HMV bids to sell live music arm
Monday 19 December 2011
Struggling retailer HMV
today said it was looking to sell its live music division as it bids to
bolster its finances after it nearly doubled half-year losses.
The group, which recently sold bookseller Waterstone's, said it was placing HMV Live, which runs 13 venues and a number of festivals including Lovebox in London and Global Gathering near Stratford-upon-Avon, under strategic review which may lead to its sale.
Elsewhere, HMV, which owns 252 stores in the UK, said its shift in focus to technology products, which has seen 144 stores refitted to reflect the new emphasis, was paying off with like-for-like sales of headphones, speakerdocks and tablet computers up 144%.
But the company revealed a bottom-line pre-tax loss of £45.7 million in the 26 weeks to October 29, compared to £27.4 million last year, while like-for-like retail sales fell 13.2% in the seven weeks to December 17.
Shares in HMV fell nearly 10% after today's results were published.
Looking ahead, the group warned the economic and trading environment created "material uncertainties" which may cast doubt over its future, while directors continued to engage in talks with its lenders.
The group previously announced the closure of up to 40 stores in a bid to make millions of pounds of cost savings, with 15 shut in the first half of the year.
Meanwhile, the sale of Waterstone's and HMV Canada raised the group £55 million and ensured a £220 million refinancing deal with its lending banks.
HMV's decision to place its concerts division under review comes despite the business posting a robust performance in the first half of the year, with total sales up 8.2% to £31.2 million.
The group said HMV Live, which has built up its portfolio of venues since the financial crisis, enjoyed a good summer festival season with attendances up by more than 20% on a like-for-like basis, while spend per head at its live venues was up 10%.
The group said within retail its technology sales were up 42%, following the store refit programme - however, the benefits of these changes were not seen in the half-year results due to the timing of the refits in the period.
HMV said in its core markets - music, visual and games - it lost market share as a result of store closures.
- 2 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 3 Andy Murray takes to Twitter to show off his Christmas jumper
- 4 Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
PlayStation and Xbox hacked by Lizard Squad
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
Dublin court rules brain-dead pregnant mother's life support can be switched off
Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...