Warning from HMV chief over bleak trading
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.