HMV records bigger losses
FIRST-half losses at HMV deepened this year as the retailer failed to launch successfully its own music festival and struggled to keep up with music download websites, it will reveal on Thursday.
HMV, which also owns book chain Waterstones, is expected to report first- half losses of up to £36 million compared to £24.9 million last year.
The retailer’s woes have helped prompt a strategic rethink.
Arden Partners analyst Nick Bubb said: “First-half profit before tax will look bad, reflecting a worrying 14 per cent like-for-like sales decline in the core HMV UK business. But management will focus on the turnaround in Waterstones, the better Christmas new release schedule, the potential for live music and the value of the online assets.”
In an attempt to diversify from CD sales, HMV this year purchased music venue company Mama Group, which owns London’s Hammersmith Apollo and G-A-Y nightclub.
Russian oligarch Alexander Mamut, whose fortune is estimated at £900 million, increased his stake in the retailer from 3 per cent to 4 per cent last week, prompting bid speculation.