HMV continues sell-off to ease debt burden

HMV, famous for its Nipper the dog trademark, is battling declining music, DVD and games markets and is focused on shifting to growth areas such as new technology products, as well as selling off non-core parts of its business.

The firm said it had sold MAMA Group and a 50 per cent interest in ticket seller business Mean Fiddler to a subsidiary of Lloyds Development Capital for £7.3m although £3.5m will be deferred for a year. HMV bought MAMA in 2010 for £46m.

Proceeds from the sale of MAMA, which owns London venues such as the HMV Forum and the Jazz Cafe, as well as festivals including Lovebox and Global Gathering, would be used to pay down debt, HMV said, which stood at £166.7m at the end of its 2011-12 year.

Talks to sell the G-A-Y and Heaven clubs – the remaining parts of its live business – were ongoing, it added.

The sale follows the disposal of its London Hammersmith Apollo live entertainment venue in May for £32m – a move which allowed the group to amend and extend its existing £220m bank facility.

HMV, which made a loss of £16.2m last year has forecast a return to profit in the 2012-13 year, reflecting disruption to rival computer games retailer Game and better terms with key suppliers.