HMV sells Hammersmith Apollo
Entertainment retailer HMV Group has agreed to sell the Hammersmith Apollo for £32 million.
In an announcement yesterday HMV said that it had sold the venue to Stage C, a company jointly owned by entertainment group AEG and ticketing services company CTS EVENTIM.
The group said the disposal will allow HMV to focus more closely on its strategy for its core business, and to develop its retail offering with a view to maximising value for its stakeholders. It will also enable the group to amend its existing £220 million bank facility with its existing lenders, extending it to 30 September 2014.
HMV said: "The disposal and the amended Bank Facility together represent an important step towards strengthening HMV's capital structure. The proceeds from the disposal will be used to reduce the group's outstanding debt and for general corporate purposes."
The disposal is expected to complete no later than the end of August 2012.
HMV added that the strategic review of the remaining elements of its Live business was still ongoing.
Simon Fox, chief executive of HMV Group, said: "The Hammersmith Apollo is an iconic London venue and it has been a privilege to own it over the last three years. However the sale will enable HMV to extend its bank facilities, strengthen its capital structure and ensure a strong future for the Group.
"AEG has a great track record in running live venues. They and their partner buyer CTS EVENTIM, the leading European ticketing services provider, have impressive and exciting plans for the Hammersmith Apollo and we wish them well."
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