HMV admit future is uncertain after announcing £36 million losses

Firm will sell live music division to help improve finances

HMV admit future is uncertain after announcing £36 million losses

Photo: PA

HMV have admitted its future is uncertain after announcing half-year losses of £36.4 million.

The retailer revealed that like-for-like sales had dropped 17.6% for the 26 weeks to October 29 compared to the same figures from last year, and said that they may be forced to sell its live music division to help improve finances.

In January this year, HMV announced that they were going to close 60 of its stores in the following 12 months after seeing its shares fall drastically, and in June agreed a new £220 million refinancing deal described by financial experts as "eye-watering".

However, today's news has prompted the retailer to take more action to help bolster its finances, with Sky News reporting that HMV Live, which runs venues such as London Hammersmith Apollo and Kentish Town Forum as well as Lovebox festival, was being placed under strategic review which could lead to its sale.

HMV chief executive Simon Fox 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.


He went on to add: "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."

Shares in HMV have also fell 5.7 per cent to 3.65p, which means the retailer is now valued at £16.4 million, but they did claim that their decision to focus on technology products was working, with like-for-like sales of products such as headphones, speaker docks and tablet computers up by 147 per cent.

Read More On This Artist

More News
SBTRKT streams new song 'The Light' featuring Denai Moore - listen
George Ezra covers Cyndi Lauper's 'Girls Just Wanna Have Fun' - watch
Foo Fighters pay tribute to late Gwar frontman Oderus Urungus at crowdfunded gig
James Blake unveils new song on BBC Radio 1 show
David Bowie to release new album 'soon', says producer Tony Visconti
Six Iranians sentenced to prison and lashings for dancing to Pharrell's 'Happy' in...
All We Are announce January 2015 release date for debut album – hear first song now
Yorkshire artists cover Gang Of Four's 'Entertainment!' in special Cassette Store...
Guildford venue The Boileroom saved from closure
Richard Hawley to reissue first three albums on vinyl
Johnny Marr reveals new single 'The Trap'
Flying Lotus reveals new song 'Coronus, The Terminator' – listen
Former member of Tatu says she would 'condemn a gay son' in homophobic TV interview
Manchester orchestra covers Oasis, Sex Pistols and The Smiths – listen
Freddie Mercury and Michael Jackson duet to feature on new Queen album 'Queen Forever'
Paul Weller backs campaign to save Guildford venue The Boileroom
Prince reveals new song 'FUNKNROLL' – listen
Guided By Voices announce split and end 'comeback run' with immediate effect
Gwar replace late frontman Oderus Urungus with new singer Vulvatron
Eminem and Sia unveil lyric video for new track 'Guts Over Fear' – watch
Musicians react as Scottish voters reject independence in historic referendum
Laura Jane Grace tweets about 'shitbag' ex-Against Me drummer rumoured to have joined...

More News

Comments

Please login to add your comment.

Featured Videos
Latest Tickets - Booking Now
 
Know Your NME
 

 
NME Store & Framed Prints
Most Read News
Popular This Week
Inside NME.COM
On NME.COM Today