Struggling entertainment retailer HMV said it is making good progress on its store closure programme.
In its full-year results for the 53 weeks ended 30 April, the group said it had identified 40 HMV stores for closure, primarily in locations where it operates more than one store.
In total, 22 stores were closed during the year. These included 19 of the 40 stores identified for closure in January, with a further 13 expected to close in the first quarter of 2011-12.
The group said it also intended to add to its portfolio of medium-sized live venues, including the re-opening of its 1,500-capacity venue in Manchester.
HMV’s negotiations over a revised facility with its lending banks progressed during its final quarter, and its suppliers remained supportive, the retailer said.
HMV confirmed the sale of Waterstone’s to A&NN Capital, backed by Russian billionaire Alexander Mamut, for £53m on 28 June. The restructuring of the group was completed this month with the disposal of HMV
Canada for £2m to Hilco.
Total group like-for-like sales were down by 11%, with like-for-like sales for continuing operations dropping by 14.5%.
Philip Rowley, HMV’s chairman, said: “Whilst we operate in rapidly changing markets, we believe that there is a clear place for HMV as a specialist retailer of entertainment products and that by rebalancing the space in many of our stores away from declining categories to a focused range of high-growth technology products, we will both enhance our offering to our customers and strengthen our sales base.”
annabel.dixon@estatesgazette.com
