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HMV confirms interest in HMV Live 15 March 2012

HMV has confirmed press speculation that it has received interest from a number of parties following the strategic review of its concerts and entertainment business HMV Live.

The entertainment retailer said while there had been ‘interest’ in the business, it was too early to tell whether a deal would be completed.

In a statement to market, the company said: “[It] notes the recent press speculation regarding the strategic review of the HMV Live business.

HMV can confirm that this review remains on-going and that a number of parties have indicated an interest in acquiring the business.

“At this stage, there can be no certainty that any transaction will be concluded and a further announcement will be made as and when appropriate.”

In January, the group announced its banking syndicate has agreed to ‘waive’ the month’s covenant test.

The entertainment chain – which recorded a year-on-year drop in sales of 16.6% in the run-up to Christmas – confirmed the banks have agreed to ‘amend’ the covenant package on its borrowings.

The deal resulted in a change of tests relating to the 12-month period ending April and July this year, providing the group with ‘significantly enhanced headroom’.

The group claimed it will have a ‘materially positive impact’ on profitability and cash flow – resulting in a 50% reduction in net debt over the next three years.

 

 

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