Deathwatch: HMV sinking deeper into the mire
HMV’s apparent slow slide towards oblivion is continuing, with the beleaguered entertainmentailer saying that it faces a "probable" breach of its current banking agreements next month, and was facing "material uncertainties" and sales for the six months to 27 October fell to £288.6m, down 13.5%.
As a result, HMV shares have fallen by 1.5 pence to 2.6p, a drop of 37%. Back in February 2005, the shares were priced at 272p. Oh dear.
Boss man Trevor Moore says that HMV is ‘maintain(ing) regular and constructive discussions with the group's banks’, adding: ‘HMV has had a difficult first half. However, the business has started to deliver a number of new initiatives which will help to maximise the seasonal sales opportunity and provide a platform for growth in 2013.
‘Additionally, as we trade through this period we will continue to develop further initiatives with our suppliers and I will provide updates at the appropriate time.’
But the grim news from Moore is that, ‘given that the current trading performance is not in line with expectations, the group is unlikely to achieve previous expectations for the full year’.
It looks as though selling various assets and closing 60 stores in 2011 isn’t having the desired effect and there’s a real chance that HMV could be the next big name to disappear from the retail firmament. And believe us, it IS a firmament.