HMV In ‘Constructive Discussions’ With Banks & Suppliers
A thread over on NeoGAF recently alerted us to potential issues over at HMV, with the post suggesting the high street retailer is in talks with its banks and could be facing bankruptcy as shares drop 40%.
This morning HMV released its interim results for the first half of the finanical year, stating that the company earned £288.6 million in sales for the first 26 weeks, which was down by 13.5% from 2011.
An operating loss of £24.1 million was reported, with a total Group loss of £36.1 million after tax and exceptional items.
These results had an affect on HMV’s shares, dropping 37% to 1.49p.
We spoke to HMV’s Head of PR Gennaro Castaldo about these concerns, who clarified that the company was in constructive discussions with its banks and suppliers.
HMV hired a new CEO and CFO in September 2012 to help turn the company’s fortunes around, while a disappointing summer release schedule was attributed to HMV’s worries.
In the press release detailing the company’s first half results, HMV’s chief executive Trevor Moore said “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.”
So it seems it’s not all doom and gloom, at least.