HMV: Future Is Uncertain After 36 Million Losses

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

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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.

Thanks for the report to NME.com.

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9 comments sorted by best / new / date

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    buzerumton
    well mabie they would get more sales if they didn't try and charge me 15 for every cd and sold them at a good price
    tatorbits
    the one thing keeping me from shopping there is that they don't carry vinyls... even a small selection would draw me into the store, at least to browse. and who knows, if i dont walk out with a record i might walk out with a movie or something. just gotta get me in there lol
    taytay8b
    Unfortunately the day of the CD is somewhat over, people don't want to fork out $13 for something that is somewhat inconvenient to carry around and listen to. I wish this wasn't the case as CDs are far superior to the digital download.
    Horizons18
    Our HMV moved all the CDs upstairs, and put the DVDs on the lower floor. Their priority isn't music anymore, and that's unfortunate. It also doesn't help with the pricing either, everything is far too expensive.
    Mack888
    taytay8b wrote: Unfortunately the day of the CD is somewhat over, people don't want to fork out $13 for something that is somewhat inconvenient to carry around and listen to. I wish this wasn't the case as CDs are far superior to the digital download.
    What's even more superior is torrenting etc...people won't pay even 7 or 8 when they can just pop onto the internet and get it for absolutely nothing in a matter of seconds. At the end of the day you can say what you want about it damaging the artists and musicians, but the real damage is being done to the retailers.
    the_hoodster
    That's a shame, HMV is the closest shop to me that sells CDs and even then that means getting on the train to Hull. I agree though their pricing is incredibly strange. I bought the Pearl Jam Twenty soundtrack last week. 2 discs and released fairly recently for 10. The same day I bought Cage The Elephant's self titled dbut, released a couple of years ago, 1 disc, . The mind boggles.
    Spekulus
    Mack888 wrote: taytay8b wrote: Unfortunately the day of the CD is somewhat over, people don't want to fork out $13 for something that is somewhat inconvenient to carry around and listen to. I wish this wasn't the case as CDs are far superior to the digital download. What's even more superior is torrenting etc...people won't pay even 7 or 8 when they can just pop onto the internet and get it for absolutely nothing in a matter of seconds. At the end of the day you can say what you want about it damaging the artists and musicians, but the real damage is being done to the retailers.
    Real damage? Does that mean retailers are more important than artists? Let me explain the basics of the music industry to you. When an album is sold at hmv the band get about 3% of that money. Some goes to the record company to repay advances and other costs, the rest is profit. Hmv add so much profit that many artists refuse to deal with them and prefer to sell through online retailers or at gigs (where they make a much higher percentage). To be fair, artists are probably better off without hmv. Torrents hurt everyone involved but if hmv weren't so expensive, (some) people would still go to them rather than find alternate means. Hmv only have themselves to blame for losing profit. The REAL damage will always be with the artists.