HMV closer to selling Waterstone's
The sale of bookseller Waterstone’s moved a step closer today when embattled HMV confirmed it was exploring options for the chain.
The company, which owns 731 HMV, Waterstone’s and Fopp stores, said no discussions were taking place about an offer for the whole group.
HMV is reported to be considering selling the book chain after lenders said it needed to raise £75m (€85m) in return for a relaxation of its lending covenants.
Potential buyers are rumoured to include founder Tim Waterstone and Russian billionaire investor Alexander Mamut.
HMV recently issued its second profit warning of the year as trading conditions failed to improve following its dismal Christmas season.
HMV Group, which is closing 60 stores over the next 12 months and shedding jobs, aims to cut costs by another £10m (€11.3m) a year.
It saw sales plunge 13.6% in UK and Ireland over Christmas and has since been hit by supplier troubles as firms struggle to gain credit insurance due to fears over HMV’s trading.
And it recently warned that it expected borrowings to be not less than £130m (€147m), significantly higher than expected.
HMV said today its banking facilities remain “fully available” and the group is continuing to maintain a “regular and constructive” dialogue with its lenders.
Other potential bidders reportedly hovering around HMV Group include retail restructuring specialist Hilco, which has owned Allied Carpets, Habitat and MK One.
HMV has faced increasing competition from online retailers and supermarkets in its core CD and DVD markets in recent years.
The group has been broadening its product mix as part of a fightback, branching into new areas such as technology and entertainment-related product sales.
