Deathwatch: HMV look doomed
HMV are pretty beleaguered at the moment, losing money, failing to adapt to what kids want in the MP3 era and now, it seems, everyone is jumping ship before it heads toward the abyss.
Days after the company announced the departure of Simon Fox as chief executive, now the finance director is chasing after him out of the door yelling 'wait for me!'
That chap is called David Wolffe and he's said he wants to go as soon as HMV can find someone to replace him. While this may seem like dull news, the fallout from it all means that HMV's shares are down nearly 5%.
Analyst Kate Calvert at Seymour Pierce issued a sell note, saying: "Adapting the famous quote from The Importance of being Earnest – 'To lose one senior director may be regarded as a misfortune. To lose two looks like carelessness'."
So bad are things at HMV, that many think that the company won't return to making a profit for the rest of this year... and the year after. Trace hope rests on a small improvement in video game sales after Game had a wobble. However, if history has taught them anything (which it clearly hasn't), HMV would do well to remember that they saw no improvements when Zavvi went under.
Is it curtains for HMV?