Second HMV director quits retailer
The management upheaval at music chain HMV continued today after its finance director said he planned to follow the company’s chief executive out the door.
David Wolffe’s departure comes just days after it emerged Simon Fox, who has been at the helm for six years, will be replaced next month by Trevor Moore, the former boss of camera retailer Jessops.
The boardroom changes have added to jitters about HMV’s recent performance, with the group expected to report full-year losses of £16 million later this week.
Seymour Pierce analyst Kate Calvert said after today’s announcement: “This is likely to result in speculation that trading remains under pressure and that the business may not return to profit in the full-year to 2013.”
She said HMV had failed to gain from the demise of Zavvi in 2008 and will continue to come under pressure from online players and the supermarkets.
HMV has said it hopes to return to profit in the current year as it benefits from selling more video games following the collapse of Game.
It secured its immediate survival earlier this year following a refinancing deal with banks and better terms with key suppliers such as Universal Music.
Shares were more than 4% lower today.
Mr Wolffe, who joined HMV from ITV Studios in January 2011, will stay on until a replacement is found.
HMV has seen its share price fall from 140p before the financial crisis to just 3.5p, giving it a market value of about £15 million.
As part of its turnaround plans, it sold its Waterstones book chain for £53 million in 2011 to Russian billionaire Alexander Mamut and offloaded its landmark Hammersmith Apollo venue.
Meanwhile, it has focused on its specialist ranges of music and DVDs and growing sales in portable technology and online and digital offers.
The company believes Mr Moore has the right skills to lead HMV forward as he revived Jessops’ fortunes by building closer relationships with suppliers such as Canon and Nikon after it was rescued by its bank, HSBC.
