Warning from HMV chief over bleak trading

Thursday, December 13, 2012
5.45 PM

HMV’s new boss today warned the entertainment group is in talks with banks over its future following worse-than-expected trading in the run-up to Christmas.

Chief executive Trevor Moore, who joined the group from camera chain Jessops, warned current market conditions suggest the group will not meet expectations for the year to April.

As a result, the terms of its bank loans are not likely to be met in January and April, placing the future of the 238-strong chain under threat.

HMV said like-for-like sales fell 10.2pc in the 26 weeks to October 27 as its pre-tax loss narrowed to £36.1m, compared to £50.1m the previous year.

The dismal results come despite reports that HMV has received £40m in financial support from its suppliers in a bid to keep it going over the vital festive period.