Music labels line up HMV rescue bid

Music and film brands including Universal Music, Warner Music, Sony and Twentieth Century Fox are reportedly putting together a rescue package for HMV.

HMV: music labels try to save the retailer
HMV: music labels try to save the retailer

The Sunday Times reported that record labels have agreed to cut the prices of CDs and DVDs to help save the high street presence of HMV, while film companies are understood to be on the verge of supporting the rescue attempt.

It is understood suppliers are battling hard to save the retailer because they believe a sizeable specialist entertainment offer is still needed on the high street.

Suppliers are concerned by the massive price cuts offered by internet retailers including Amazon and supermarkets such as Tesco.

The entertainment consortium is understood to favour a rescue bid by Hilco, which bought the Canadian arm of HMV and salvaged Habitat.

Any rescue bid is likely to result in a slimmed-down store estate and an improved multi-channel proposition, including click-and-collect and in-store Wi-Fi.

HMV has a number of stores which remain profitable, including its flagship store in Oxford Street, London. However, many are losing money as a result of the large rental costs for prime locations and the necessity to pay rents quarterly rather than monthly, which damages the cash flow of retailers.

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.

SUBSCRIBE

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
The top 10 brands favoured by Remainers and Brexiters
Shares0
Share

1 The top 10 brands favoured by Remainers and Brexiters

Marketers can learn about our divided nation by examining the brands that appeal across the voting referendum voting split, says Emily James, chief strategy officer at Rainey Kelly Campbell Roalfe/Y&R.

Just published