Entertainment retailer HMV has today announced the sale of live music company Mama Group as it seeks to reduce its debt.
Sold to Juno Newco for a net cash consideration of £7.3 million, £3.5 million of the total sum will be deferred for 12 months, and the sale includes Mama Group‘s subsidiaries and its separately held interest in 50 per cent of the Mean Fiddler Group.
The sale does not include GAY Group or Heaven (London),HMV pointed out, adding that these will be the subject of a separate transaction “discussions of which are ongoing”, according to an HMV spokesperson.
In June, the embattled retailer revealed that it had sold live music venue Hammersmith Apollo for £32 million, allowing the group to amend its banking facility with existing lenders as part of its wider financial strategy.
The past year has proved a turbulent one for the entertainment specialist, which saw its CEO Simon Fox stand down from his role in August, quickly followed by Finance Director David Wolffe ahead of full-year results which revealed a pre-tax loss of £16.2 million.
An HMV spokesperson commented on today‘s sale, noting: “The net cash consideration for the sale of MAMA is £7.3 million of which £3.5 million will be deferred for 12months.
“The proceeds of sale will be used to reduce the Company‘s debt.
“This sale is a further step in the disposal of the HMV Live Business and follows the disposal earlier this year of the Hammersmith Apollo.”