Deathwatch: Profits warning from HMV as things get worse for Nipper the dog
Struggling entertainment retailer HMV has tottered closer to the retail abyss today with yet another profits warning, coupled with the admission that it is on the brink of failing to meet the terms of its loan agreements next month.
HMV Group have said that they’re trying to renegotiate loan terms but have said that “…the group now expects that profit before tax and exceptional items for the financial year will be moderately below market expectations”. Back in January, it announced that 60 stores would close, in the wake of a rotten period of Christmas trading.
They have also announced that its net debt is expected to be not less than £130m - double the £67m it reported in April 2010. A sell-off of the HMV-owned Waterstones is now predicted but whether that will be enough to save the ailing HMV Group remains to be seen.
In these days of supermarkets selling CDs, DVDs and games and with the likes of Amazon and Play firmly established as an entertainment retail alternative, would any of us even miss HMV all that much?