HMV to close 60 stores as sales and shares plummet
Business Digest: Books and music chain announces closures and £10m savings
The music and books retailer HMV Group has announced plans to close 60 stores after poor sales over Christmas and a 24 per cent drop in its share price. The latest drop means the cumulative fall in its share price is 78 per cent over the past 13 months.
Sales during the vital five-week trading period to January 1 were down 10 per cent on last year with the HMV music stores taking a 13 per cent hit in revenue.
HMV, which also owns Waterstone's bookstores, said profits for the financial year would be at the bottom end of forecasts, blaming the severe weather and "challenging trading conditions".
In addition to store closures, HMV said in today's trading statement that other cost-saving measures would have to be brought in to claw back £10m a year and that "further mitigating actions" were needed in the next four months to avoid breaching the terms of a loan.
Read a full report at the BBC.