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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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13 May 2011 06:13

Friday newspaper round-up: HMV, British Airways v Unite, Facebook v Google

HMV's efforts to sell its Waterstone's book business are being stymied by a stand-off between the beleaguered entertainment group's banks and the potential buyer, Alexander Mamut, over price. The Russian billionaire is thought to have offered between £35m and £45m to acquire the 297-store bookseller

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10 Apr 2011 12:24

Sunday newspaper round-up: BP, HMV, Portugal

Tony Hayward's position on the board of BP's Russian joint venture TNK-BP is in jeopardy, amid concerns at the top of the oil giant about his growing dislocation from the company. The Sunday Telegraph understands the board of BP, led by chairman Carl-Henric Svanberg, is likely to consider replacing

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5 Apr 2011 16:42

London close: London limps lower on quiet day

London's leading share index finished in the red on a sluggish, but things could liven up later in the week following the release of the minutes from the last US Federal Reserve meeting tonight. Among the fallers in the FTSE 100 was British Airways owner IAG, which announced that high oil prices ha

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5 Apr 2011 14:16

London afternoon: Stocks still sleepwalking

London is still in a somnambulant mood on a day that is light on big company news, with Footsie still in the red despite a moderate revival over the lunch time session. Music and film retailer HMV continues to struggle against tough conditions on the high street and competition from supermarkets an

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5 Apr 2011 12:04

London midday: Shares in wait-and-see mode

Shares are still subdued as investors look ahead to a stream of economic news beginning tonight. There has been some M&A to stir up excitement though. The US Federal Reserve is due tonight to publish the minutes from the most recent meeting of its rate-setting committee while later in the week the

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5 Apr 2011 08:24

London open: Shares unchanged ahead of economic announcements

Traders are sitting on their hands amid a shortage of big company news and ahead of some important economic announcements. The US Federal Reserve is due tonight to publish the minutes from the most recent meeting of its rate-setting committee while later in the week the Bank of England and the Euro

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5 Apr 2011 07:40

London pre-open: Stuck in neutral

It is a big week for economic announcements and investors remain reluctant to commit themselves until they have heard from the central banks in the UK, US and continental Europe. The US Federal Reserve is due tonight to publish the minutes from the most recent meeting of its rate-setting committee

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5 Apr 2011 07:04

HMV slashes profit forecast

Music and film retailer HMV has issued another profit warning as it continues to struggle against tough conditions on the high street and competition from supermarkets and digital downloads. It said it expects profits before tax for the full year to come in at £30m. In a trading update last month H

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25 Mar 2011 17:19

London close: Footsie back at 5,900

Blue chips closed the week just above 5,900 with decent gains across a range of sectors helped by a smattering of broker recommendations. Reckitt Benckiser is wanted after Bank of America Merrill Lynch upgraded the stock of the Cillit Bang maker to "buy" from "neutral", while Autonomy is in the red

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25 Mar 2011 16:34

HMV confirms Waterstone's sale

HMV, the struggling entertainment media retailer, has confirmed press speculation that it looking to offload its Waterstone's and HMV Canada chains. "There can be no certainty that any transaction will be concluded. The board also confirms that no discussions are taking place with respect to an off

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25 Mar 2011 14:07

London afternoon: Gaming firms in demand

Leading shares are mixed after the strong opening prompted traders to bank some profits at the end of a week which has seen the top share index advance by around 170 points. Broker commentary is behind the share price movements of the Footsie's best and worst performers. Reckitt Benckiser is wante

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25 Mar 2011 12:08

London midday: Footsie clings on

Footsie just about kept its head above water in the morning session but index heavyweight BP was a major drag after last night's news about the blocking of its $16bn joint venture with Rosneft. Broker commentary is behind the share price movements of the Footsie's best and worst performers. Reckit

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20 Mar 2011 08:59

Sunday newspaper round-up: Barclays, Budget, Punch...

Barclays has warned the Treasury against breaking up banks in a thinly veiled threat that it may move its headquarters to America. John Varley, the bank's former chief executive and its lead adviser on government affairs, held a tense meeting with officials last week. It was one of a series of priv

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2 Mar 2011 06:43

Wednesday tips round-up: Provident Financial, GKN, Fresnillo...

Long-term sceptics of doorstep lender Provident Financial say the big concern is Provident's capital position. The company again refused to give a figure for its surplus cash position - the concern being that it wouldn't be great news and could be as low as £20m rather than £50m or £60m that is ofte

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1 Mar 2011 16:43

London close: Shares in late dive as Mideast worries resurface

The spectre of higher oil prices sent a chill down traders' spines late in the afternoon, sending shares plummeting into the red. The turmoil in the Arab World is behind the spike in crude, with a barrel for April delivery rallying towards $100 in New York. Worries over the possibility of protests

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