Retail Deathwatch: HMV bring in KPMG to help with the money stuff and that
The struggling HMV Group could be sinking further and deeper and further and deeper into the mire following the news that they have brought in the steel-eyed accountancy firm KPMG, and more specifically, their debt advisory team. The news led to a sudden drop in the HMV share price.
The news follows reports yesterday that HMV’s suppliers were struggling to secure credit insurance following worries over the company’s recent performance. It also follows the post-Christmas trading update, where like-for-like sales dropped by 14.1% over the festive period, as well as the news that compliance with covenant tests relating to their banking facilities will ahem, need a bit of attention over the next four months.
So there you go. A severe drop in sales, added to doubts over credit insurance for suppliers and a particularly iffy-looking few months coming up for the bean-counters – could HMV be heading towards oblivion? Watch this space…