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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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5 Jan 2011 07:37

London pre-open: Retailers in focus

London looks set to open weaker, continuing the softer trend seen towards the end of yesterday's session. City traders expect the FTSE 100 index will open down by about 6 points from last night's close. Retailers are in focus in the early going. The snow lost Next an estimated £22m of full price sa

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5 Jan 2011 07:27

HMV closes 60 stores as snow scuppers recovery hopes

Hopes that Christmas trading could spark a revival in trading at music retailer HMV have been dashed by the snow with sales falling across the group and 60 store closures planned. Bank covenants are now also under pressure. "Given the difficult trading conditions over Christmas and the likely outtu

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1 Jan 2011 12:12

The turkeys of 2010

With apologies to those of you who, after a week of seasonal indulgence, are sick of the sound of the word 'turkey', never mind the taste of it, here is an overview of the 'Turkeys of 2010', the stocks you did not want to be holding last year. Among FTSE All-Share constituents care home operator So

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23 Dec 2010 13:23

Sector movers: Rio Tinto drags mining lower

Rio Tinto is among the stocks dragging on the mining sector after increasing its offer for Riversdale Mining to A$16 a share in cash, securing the backing of management for a deal worth A$3.9bn (£2.5bn). The mining giant admitted earlier this month it had talked to the Sydney-based firm, which has

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13 Dec 2010 10:33

Christmas 'no worse' for two-thirds of retailers

Shopaholic Britons aren't expected to let a bit of snow and economic hardship ruin their Christmas, and almost two thirds of retailers are predicting business will be at least as good as last year. A new survey by the British Retail Consortium (BRC) reveals that 35% of companies think retail sales

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10 Dec 2010 06:44

Friday tips round-up: DS Smith, Xstrata, HMV...

As a low-growth, low-margin stock, packaging group DS Smith had previously been bought for its high yield; after their sharp rise since halfway through last year, the shares now return a little more than 2%. They are on about 13 times this year's earnings, a premium rating for the stock, but susta

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9 Dec 2010 16:40

London close: Footsie clings to lead

A weak morning session on Wall Street did London no favours Thursday, although the big banks helped the leading index to only its second close above 5,800 in over three weeks. Barclays, Lloyds and Royal Bank of Scotland were top of the pile. HSBC also did well, but fellow Asia-focused player Stand

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9 Dec 2010 14:42

London afternoon: Banks help index advance

A mostly better banking sector, gains for some of the mining heavyweights and a decent start on Wall Street are offsetting losses among the big retailers. Lloyds, Royal Bank of Scotland and Barclays are going well following a good session in overseas markets, though Asia-focused Standard Chartered

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9 Dec 2010 12:13

London midday: Shares steady as Bank holds rates

The midday announcement that interest rates and quantitative easing will remain unchanged surprised no one and shares remain little changed. Banks and miners are going well. Platinum specialist Lonmin, copper miners Antofagasta, Kazakhmys and ENRC are also in demand, as are the Australian iron ore

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9 Dec 2010 08:44

London open: Miners on the march

The leading share index is posting good gains this morning, with the mining sector on the march as metals prices advance. Platinum specialist Lonmin leads the FTSE 100 higher. Copper miners Antofagasta, Kazakhmys and ENRC are also in demand, as are the Australian iron ore duo Rio Tinto and BHP Bill

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9 Dec 2010 07:37

London pre-open: Blue chips set for early push

Overnight strength on Wall Street looks like spreading over here this morning, with futures prices pointing to a charge back above 5,800. The FTSE 100 is expected to add more than 40 points when trading starts, according to City forecasters. As expected, "extremely difficult" market conditions and

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9 Dec 2010 07:02

HMV halves divi as losses swell

As expected, "extremely difficult" market conditions and a bigger than expected first half loss have forced CD and DVD retailer HMV to slash the interim dividend. The owner of book chain Waterstone's lost £41.3m before tax in the 26 weeks ended 23 October, up from £24.9m last year and worse than th

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8 Dec 2010 17:29

Thursday Preview: HMV, DS Smith, interest rates

CD and DVD retailer HMV also sells video games, and is reporting interim results the day after Game said its margins this year will be down by between 1.6-1.9 percentage points due to the ferocious competition in the games and consoles market. CD and DVD sales face similar challenges and HMV is exp

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3 Dec 2010 12:07

Week Ahead: HMV, Game, BoE rate decision

Christmas is coming which means it is the busiest time of the year for computer game sellers HMV and Game, both of which have trading statements next week. HMV, which sells a wide range of entertainment products in its stores in addition to computer games, and which also includes bookstore chain Wa

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8 Oct 2010 13:15

Broker tips: Mid-cap income plays, Carnival, Speedy Hire

Broker Charles Stanley has run the microscope over constituents of the FTSE 250 index looking for key income buys and come up with five likely candidates. Though the broker was looking at stocks primarily for their attractive yields, it makes a good case for diving into the FTSE 250 for capital app

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