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HMV considering offers for Waterstone’s

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Entertainment retailer HMV Group has today confirmed that it is exploring the possibility of selling off the Waterstone’s and HMV Canada segments of its business.

Although the group is considering the future of these parts of the business, it claims that no discussions are currently taking place with respect to an offer for the group.

HMV issued a profits warning this month due to a challenging trading environment and 60 storesincluding 11 Waterstone’s properties were scheduled for closure at the start of this year.

Today’s statement read: “In response to press speculation, the board confirms it is exploring strategic options in respect of Waterstone’s and HMV Canada. There can be no certainty that any transaction will be concluded.

“The group’s lending banks continue to be supportive, our banking facilities remain fully available and the group is continuing to maintain a regular and constructive dialogue with its lenders.”

Many analysts have been suggesting in recent times that an offloading of the Waterstone’s operations would help consolidate its core business but this is the first time that HMV has admitted that it is considering selling the bookseller chain.

Its core markets of CD and DVD sales, as well as Waterstone’s books offering, have suffered from the birth of digital media and the increasing popularity of entertainment e-tailers such as Amazon.

HMV suffered further upheaval earlier this month when longstanding Chairman of the group Robert Swannell stood down from his position to be replaced by Philip Rowley.

Published on Friday 25 March by Editorial Assistant

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