Retail Deathwatch: HMV bring in KPMG to help with the money stuff and that

19 January 2011

retaildeathwatchThe 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…

TOPICS:   Investments


  • Gunn
    Coulda sworn I just saw an article on the news saying how well they were doing compared to other retailers. Who do I believe?!
  • Wongiranger
    Hilco on the starting blocks...ready to pounce
  • andy y.
    Once confidence in a companie's credit status comes into question suppliers and landlords want cash now.HMV's cash flow will come under severe pressure.Might be some good discounts as they look to turn stock into cash. Will they survive...,maybe...but usually in this situation not.We shall see.
  • Mr M.
    I have £150 in vouchers for HMV, Better hurry the feck up and spend them whilst I still can...
  • Delenn
    @Bitterwallet Have you done no research today? Just sitting on your chair eating apples? If you had, you would have realised that HMV is down 2.9%, but that was far from the biggest drop (Imperial Tobacco - thanks for asking). Now you yourself said "compliance with covenant tests relating to their banking facilities will ahem, need a bit of attention over the next four months". What do you think KPMG are there for? Eh? Starter for one - TO ADVISE ON THEM MEETING THEIR BANKING COVENANTS. Jeez. Is it that hard to work out? Just another uneducated piece of cut and paste work. Well done guys..... Not.
  • pauski
    @Delenn You are so funny.....Not.
  • andy y.
    KPMG are there to advise them how to keep the banks sweet after HMV break the covenants,if they already have not. Best case scenario is that the covenants are renegotiated in the bank's favour, wiping out most of the shareholder equity.Worst case is kaboom.
  • Steve
    It always amazes me how a drop in profits spells doom and gloom for a company. It just a drop in profits, they're still making money. Seems nowadays companies can't get by on just making money, they have to make shit loads.
  • Brad
    Serves the fuckers right for still trying to charge 14.99 for a 10 year old album, Kick up the arse they need from the sounds of it.
  • kv
    wouldnt mind another clearance sale like the Zavvi one
  • hippy
    Best advice for people shopping online at hmv is pay with credit cards. To be honest hmv prices were good when tower records were still about, but now play and amazon are better priced and hmv is the new tower records.
  • Sky
    Do you just search sky news? And copy the content, try being 1st with news, might just might make your site more appealing to the very few readers you have.
  • Jerec
    No sympathy for them at all, expensive prices, load stores, always busy and hard to find what you want. Good riddance.
  • Jerec
    Sorry that should read Loud stores.
  • Kevin
    Drop in profits causes the stock price to fall, if the stock price falls then the company is worth less, if it is worth less then people don't want to buy shares so the price goes down even more. If the business is worth less then they can't arrange credit, loans or make deals in the same way that they'd like to be able to. If that news comes out then the stock market price goes down again.
  • Andrew S.
    This loss to HMV was predictable to people in Suffolk. Locals here consider they are victims of the curse of St Edmund launched against the Cattle/Market Arc shopping mall in Bury St Edmunds in 2005. HMV scoffed and said they would be the first to open in the cursed shopping mall. Look at the result! The same has happened to Debenhams. Unless they pull out of Bury St Edmunds this slide will continue.

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