Music industry backs HMV
HMV has received the “full support” of music industry executives after fears over its relationship with suppliers hit the retailer’s share price.
In a letter to The Times, executives from some of the UK’s biggest record labels wrote: “HMV is at the heart of our industry, and it has the support of all of us”.
Signatories include EMI Music chief executive Andria Vidler, Christian Tattersfield, Warner Music CEO and Sony Music boss Ged Doherty.
Yesterday (20 January) the entertainment chain revealed that some its credit insurers are reducing the level of cover they provide the group. Credit insurance covers suppliers against losses if HMV can not pay its bills.
The retailer insists that it continues to “maintain excellent relations” with suppliers and “have had no difficulty in obtaining stock.”
HMV has appointed KPMG to help it avoid breaching banking covenants after reporting poor sales over the festive period.
The letter says: “With reference to the recent speculation in the media, we would like to clarify that nothing has changed in each of our individual trading relationships with HMV – it is business as usual.”
Shares fell 3% in trading yesterday.
