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Business News HMV Timeline Retail
HMV’s lenders appointing advisors
By CMU Editorial | Published on Friday 25 February 2011
Money lenders to the HMV Group, which includes Lloyds Bank, are reportedly in the process of appointing accountancy firms to advise them on the state of the music and entertainment retailer.
As previously reported, HMV admitted earlier this year that, following disappointing Christmas sales, the firm would struggle to meet the covenants linked to its current loans. KPMG has been working with HMV CEO Simon Fox to revise the firm’s business plan, possibly in a bid to convince money lenders to restructure the company’s debts.
According to Sky News, HMV creditors will now appoint their own advisors to assess the plans Fox and KPMG come up with ahead of what will presumably be tense negotiations in the coming weeks to ensure the music and entertainment firm doesn’t breach loan terms. Though Sky adds that the appointment of such advisors by the banks in these circumstances is in no way unusual.
As previously reported, Russian business man Alexander Mamut, who currently owns 6% of HMV, has appointed Credit Suisse to advise on his interest in the firm. Some reckon he might bid to buy the Waterstones part of HMV outright, though it is thought that, even though that would generate much needed quick cash, Fox is against breaking up the company which he has been busy diversifying in recent years.
