HMV Group is closing 60 stores in the UK, including 20 branches of Waterstone's, after suffering a sharp drop in sales during the crucial Christmas period.
The chain of high street evil that has been issued for the revision of the retail sector in the first half of 2011 this morning, a great hope that his fortunes had improved. In an unexpected trading statement dubbed "spooky" by an analyst in the city, admitted that sales HMV like-for-like UK and Ireland fell from 13.6% in December. He also warned that it violates the conditions of its loans with banks.
HMV hand, they have already lost more than two thirds of its value last year, fell 20% to 25.75p.
The company did not say which stores will be closed, but said it was directed at areas with "multiple" HMV or English departments. HMV hopes to transfer the remaining staff in stores, but may still be some job losses in the group because it includes a £ 10m additional cost savings.
Warning about today's result comes less than a month after HMV alarmed by reports of the City a loss of 40 million pounds for the first half of this fiscal year. The company is pinning its hopes on a strong Christmas, but last month the Arctic blast appears to have sabotaged his chances.
"The difficult market entertainment, combined with bad weather during our peak trading period had a negative impact on our year of negotiations to date. In addition, there are headwinds consumers will note that we are entering 2011," said the company. Many retailers have warned that the austerity measures in Britain, as the increase in VAT will hurt them this year.
"Given the difficult market conditions for Christmas and the likely result of the year, the board now expects that the compliance test of the alliance in April with bank credit facility, the group will be tight and making new mitigation measures over the next four months to resolve this problem, "said HMV.
CEO Simon Fox insisted that HMV was "profitable and cash generative business and a strong brand of entertainment."
Analysts, however, have expressed doubts about the long-term prospects of the company. Before today, the SMP was expected to make a profit of between £ 46m and £ 60m. It now believes the result will be "lower end" of expectations.
Nick Bubb analyst at Arden Partners, warned that the SMP is likely to be cleaved.
"Something that can be recovered from the rubble, as a violation related to the potential sale of Waterstone's almost could keep the group alive," said Bubb.
Comparable sales in the English fell 0.4% in December.
Fellow high street retailer Next was also the cost of snow today. It 'was announced that about € 22m full price for the sale of the buyers who died in December, avoided the main road, although the company's Directory to benefit from the boom as Christmas gifts for people back home instead.
Fantasy Games Workshop is also an expert warned today that its profit is in line with market expectations. Its net sales were down 4% in six months, November 28, followed by "difficult trading conditions" in December.
John Lewis, however, celebrated a merry Christmas, with comparable sales up 7.6% last month.
There are currently five HMV stores in Edinburgh and Glasgow, Manchester and Birmingham to four, and three in Leeds and Belfast. Several cities have two HMV stores, including Bolton, Nottingham, Portsmouth and Reading.
There are 52 stores in London, including 16 in the center of the capital.
The company has already announced it will close its flagship store at 360 Oxford Street, Bond Street near the station.
In Spain there are seven stores in or near Dublin.
Water Stone offices are usually a mess, but it works 15 branches in London, you're in Edinburgh and two in Birmingham, Manchester, Sheffield, Derby and Glasgow Central.
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