Jobs fear as HMV can't pay bank loans

MUSIC store HMV is at the centre of fresh job fears after it was revealed today it can't pay bank loans following a six-month sales slump.

Loading Comments
Share
Print

The entertainment group is in talks with bankers amid worries about its future after announcing half yearly losses of £36.1million.

Although losses have been cut by £14m compared with trading figures for a 26-week period ending October 27 last year, the chain admitted it was unlikely to meet the terms of existing bank loans next month and April.

Chief executive Trevor Moore said closing more stores or placing the business into administration is not "part of our plan", but the financial woes have triggered new fears about HMV's future.

There are 238 HMV stores across the UK, including four in Glasgow – Argyle Street, Buchanan Street, the Fort and Silverburn shopping centres – and also at Braehead and East Kilbride.

HMV said like-for-like sales fell 10.2% in the 26 weeks to October 27 as its pre-tax loss narrowed to £36.1m, against £50.1m the previous year.

HMV shares fell 39% today, giving the retailer a market value of just £10.1m.

Suppliers, including Universal Music, came to HMV's rescue last January with a deal that helped the retailer shed some of its huge debt pile.

Music publishers and film studios are keen to see HMV survive as internet retailers such as Amazon chip away at their profit margins.

It is understood HMV has secured improved access to music and film suppliers' back catalogues and is buying stock on consignment, meaning it pays only for products if it sells them.

HMV's struggle has seen it sell off several parts of its business, including the Waterstones book retailer, to reduce its debt pile, while closing loss-making stores.

retail

Commenting & Moderation

We moderate all comments on Evening Times on either a pre-moderated or post-moderated basis. If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

109946

Have you got a story?

Contact the news desk on 0141 302 6520 or email news@eveningtimes.co.uk
A weekly round up of social highlights

A weekly round up of social highlights

Cat's Eyes on Glasgow

gymnast Louis Smith loving my presenting skills and other Games highlights

Times Out

Entertainment

Lifestyle

TV Advert
Gail’s Gab

Gail’s Gab

Gail Sheridan is a mother-of-one and wife to Tommy and she likes to get political with the hot topic of the week in her column Gail’s Gab.

Michelle McManus

Michelle McManus

Sussed in the City

I’m getting older and wise when it comes to partying.

Janice Bell

Janice Bell

You couldn’t make up half the stuff that happens to PA Janice Bell- some of the jams she gets herself into are worth a story or two.