HMV confirms Waterstone’s sale could go ahead

HMV has confirmed that it is considering selling off the Waterstone’s chain as part of its turnaround strategy.

/a/x/e/hmv.jpg

The entertainment retailer also says it is considering selling its HMV Canada business.

In a statement to shareholders HMV says it is “exploring strategic options in respect of Waterstone’s and HMV Canada” but maintains that nothing has been decided and a sale may not go ahead.

It went on to reiterate that: “The Group’s lending banks continue to be supportive, our banking facilities remain fully available and the Group is continuing to maintain a regular and constructive dialogue with its lenders.”

Selling the bookstore chain is one option the retail group is considering in order to raise cash in return for a relaxation of its lending covenants to avoid breaching certain terms of its bank loan.

HMV has issued two profit warnings this year and expects to miss its target of £45m in full-year underlying pre-tax profits.

Other options HMV is thought to be considering to raise cash include further store closures, it is already planning to close 60 stores, or a share issue.

Tim Waterstone, the book chain’s founder has been cited as a possible bidder for the chain. As has Russian investor Alexander Mamut, who has increased his stake in HMV Group to 6% in the past three months.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here