HMV Still in Big Trouble Financially
Even after selling the Hammersmith Apollo and the Mama Group it seems as though HMV are still in trouble. HMV’s total sales were down 13.5% to £277.6 in the six months to October 27 this year (2011: £333.7m).
The retail group has admitted in a new interim trading statement that it will be forced into a “probable” covenant breach of its banking at the end of January 2013
It said: “Current market trading conditions result in material uncertainties facing HMV… Constructive discussions with the Group’s banks including keeping them fully informed in relation to current trading.”
Chief Executive Trevor Moore said: “HMV has had a difficult first half. However, the business has started to deliver a number of new initiatives which will help to maximise the seasonal sales opportunity and provide a platform for growth in 2013.
“Additionally, as we trade through this period we will continue to develop further initiatives with our suppliers and I will provide updates at the appropriate time.”