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HMV shares to be suspended as music chain enters administration

Tue, 15th Jan 2013 06:59

Ailing high street music retailer HMV has entered into administration less than one month after it published interim financial results citing the possibility of it breaching banking covenants.HMV: Outlets may stay open as potential buyer is soughtThe chain, which first opened in 1921, has more than 200 stores and more than 4,000 members of staff. Appointed administrator Deloitte will try to keep outlets open as it assesses the likelihood of selling the company to a potential buyer.In its interim results for the 26 weeks to October 27th, the group revealed a loss after tax of £36.1m. Only four months ago, it recruited a new Chief Executive Officer and Chief Financial Officer. On December 13th, the company announced that as a result of current market trading conditions, it faced material uncertainties and it was probable that the group would not comply with its banking covenants at the end of January 2013. The company also stated at this point that it was in discussions with its banks.HMV: unable to trade outside of insolvency protectionA statement issued by the company on Tuesday morning read: "Since that date, the company has continued the discussions with its banks and other key stakeholders to remedy the imminent covenant breach. "However, the board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection, and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect. The directors of the company understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business."The company's ordinary shares will be suspended from trading on the London Stock Exchange with immediate effect.MF
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9 Jan 2012 09:19

Monday broker round-up - UPDATE

InterContinental Hotels: Deutsche Bank upgrades to buy from hold. Fresnillo: Deutsche Bank upgrades to buy from hold. Antofagasta: Deutsche Bank downgrades to hold from buy. ARM Holdings: Citi reiterates buy. Capita: Panmure Gordon downgrades from hold to sell, target cut from 700p to 560p. Mor

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9 Jan 2012 08:55

HMV eyes Live sale as Christmas disappoints

HMV, the troubled music retailer, has dropped 6.7% this morning after reporting like for like (LFL) sales down 8.1% over the crucial five weeks to the end of December when compared to the same period of 2010. Today's release also includes a nine week figure to the end of December during which LFL s

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19 Dec 2011 12:20

Broker tips: Ocado, 888 Holdings, HMV

Panmure Gordon has maintained its sell rating for online grocer Ocado, following the firm's profit warning on Monday. "The competitive environment will get tougher and we don't see Ocado as anything special, so it should not be valued as such," said Panmure analyst Philip Dorgan. "We believe that O

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19 Dec 2011 11:50

London midday: Banks fall, Footsie flat

The Footsie pared gains and was trading flat by midday with banking stocks providing a drag ahead of the government's response to Sir John Vickers' report into banking. The Bank of England's Quarterly Bulletin revealed that 56% of households surveyed reckoned that income available after tax, insura

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19 Dec 2011 10:05

Broker snap: Christmas is the key for HMV, says Nomura

The key holiday trading season will be pivotal for HMV, according to Nomura, following the entertainment retailer's first half results which disappointed on Monday. The firm's first half results reflected the "challenging trading environment for entertainment categories," Nomura said. The broker s

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19 Dec 2011 09:10

Monday broker round-up - UPDATE

Randgold Resources: Goldman Sachs downgrades to sell from neutral. Aggreko: Investec puts 1,950p target under review, buy rating retained. Carnival: Evolution Securities keeps buy recommendation and 2,850p target. Ocado: Panmure Gordon keeps sell rating and 50p target. Babcock: Panmure Gordon r

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19 Dec 2011 08:38

London open: Householders' gloom hits equities

Economic data is proving a drag on sentiment in London, with gloomy news on consumer sentiment from the Bank of England and bad news for house sellers in England and Wales from the Rightmove property listings web site. The Bank of England's Quarterly Bulletin revealed that 56% of households surveye

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19 Dec 2011 08:03

Tough times continue at HMV - UPDATE

Sales and profits continued to fall at HMV as the firm puts its faith in gadgetry to turn fortunes around. Total sales from continuing operations were £364.9m in the six months to 27 October, down 17.6% on the year before. Sales at HMV Retail were down 19.4%, including like for like sales down 11.

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30 Oct 2011 15:46

Sunday newspaper round-up: Barclays, Italy, ECB, funds, G4S

"Investment banking revenues at Royal Bank of Scotland and Barclays have taken a significant dive during the third quarter, results this week are expected to show. Keith Bowman, banking specialist at broker Hargreaves Lansdown, believes figures from the two banks' investment banking divisions could

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9 Sep 2011 08:00

Sales decline stabilising at HMV

Sales are still on the slide at struggling CD and DVD retailer HMV but the rate of decline has stabilised, and there are signs that the change of focus to portable digital products is working. The company said like-for-like sales in its retail division were down 15.1% from a year earlier in the com

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8 Sep 2011 17:37

Friday preview: JD Wetherspoon, HMV

A wide selection of ales, cheap nosh and a relentless expansion programme has served pubs operator JD Wetherspoon well over the years, though the company has not been immune to the effects of the downturn in consumer spending. Panmure Gordon suggests, meanwhile, that "current trading is likely to b

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30 Jun 2011 16:38

London close: Rally continues as Greek fears ease

The rally continued Thursday, helping the top share index move back towards the 6,000 point mark it had been flitting around from the beginning of the year until the escalation of the Greek debt crisis. The Greek parliament's second vote on the proposed new austerity measures provided further chee

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30 Jun 2011 12:02

London midday: Lloyds leads the charge

The top share index is in positive territory again, with Lloyds Banking Group leading the charge after revealing the details of its strategic review. Lloyds, the part-nationalised high street behemoth, is aiming to shed a further 15,000 jobs and cut its presence in foreign markets by half. The ann

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30 Jun 2011 09:45

HMV sales and profits slide

Struggling CD and DVD retailer HMV is already pinning its hopes on a good Christmas to help revive declining sales. In the year to 30 April, sales fell by 7% from the same period the previous year to £1.868bn, while the company struggled to stay in the black, with pre-tax profits falling to £2.6m f

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29 Jun 2011 16:17

Thursday preview: Debenhams, HMV

Department store group Debenhams will give a trading update on Thursday covering the group's third quarter. Matrix Group is forecasting year-on-year like-for-like (LFL) sales growth of 1.0%, and an increase in gross margin of one-fifth of a percentage point. "The shape of the reporting period is

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