THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
HMV announces sale of Waterstone's for £53 million

HMV Group has announced that it is to sell its Waterstone's bookstore business for £53 million to A&NN Capital Fund Management, which is a fund controlled by Russian billionaire Alexander Mamut.

CITY & CORPORATE

HMV announces sale of Waterstone's for £53 million

The deal is expected to be completed by the end of June, the proceeds of which will largely be used to reduce HMV’s borrowing requirements. It will also enable the company to focus more attention on turning the HMV business around and to improving the customer offering, HMV said.

The sale is conditional on shareholder approval as well as consent from HMV’s bank and its pension trustee. HMV said: "There can be no certainty that any transaction will be concluded and a further announcement will be made as and when appropriate."

Mamut already holds a 6.7% share in share in HMV.

HMV put the Waterstones chain up for sale in March and issued its third profit warning in April. The company said the sale represents an "important step towards strengthening the capital structure of the remaining HMV Group".

Simon Fox, HMV Group chief executive said: "We expect this deal to enable the group to achieve a reduction in the group's borrowing requirements, and, in turn, focus on plans for transforming the HMV Group into a broad-based entertainment business."
 
He continued: "We are extremely pleased to have reached an agreement to acquire Waterstone's and its great heritage," said Mamut. "I believe that our investment and strategy will secure a dynamic future for the UK's largest bookshop chain and I look forward to working with its booksellers in building on the principle of excellent bookselling, which is at the very heart of the business."

HMV also gave a trading update, announcing that sales declined 15.2% year-on-year in the 17 weeks to 30 April. HMV UK and Ireland sales fell by 18.8% and sales at Waterstone’s were down 11.3%. The group said it expected pretax profit for the fiscal year 2011 to be around £28.5 million and net debt at the April 30 year end to be around £170 million.


Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Retail Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Summit 2018
The Retail Design Summit 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Summit 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
National Minimum Wage Breakfast Briefing
National Minimum Wage Breakfast Briefing
20 September 2018
6th Floor 1, St. Martin's Le Grand London, EC1A 4AS
National Minimum Wage Breakfast Briefing