HMV shares climb 6% following Waterstone sale talks



HMV

HMV

Troubled HMV have seen a welcome 6% rise in their share price, following an announcement that the firm were looking to sell off their Waterstone’s book shops.

HMV have struggled of late as consumers turn to iTunes and the internet to buy their music, and have announced a number of store closures following a tumble in sales figures.

Waterstones founder, Tim Waterstone, and Russian tycoon Alexander Mamut are said to be looking into buying the firm, although the group denied any discussions about a sale were ongoing.

After two profit warnings already this year, The HMV group are in danger of breaching their banking covenants, as sales have stayed low.

HMV released a statement saying, “In response to press speculation, the board confirms it is exploring strategic options in respect of Waterstone’s and HMV Canada,”

“There can be no certainty that any transaction will be concluded.”

The group have warned that full year pre tax profits will be short of the market expectations, but did add that their, “lending banks continue to be supportive, our banking facilities remain fully available and the group is continuing to maintain regular and constructive dialogue with its lenders”.

HMV will close 60 stores this year, in a bid to halt the decline.

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