Upheaval at HMV goes on as finance director to leave

David Wolffe’s departure comes just days after it emerged Simon Fox, who has been at the helm for six years, will be replaced next month by Trevor Moore, the former boss of camera retailer Jessops.

The boardroom changes have added to jitters about HMV’s recent performance, with the group expected to report full-year losses of £16m later this week.

Seymour Pierce analyst Kate Calvert said after the announcement: “This is likely to result in speculation that trading remains under pressure and that the business may not return to profit in the full-year to 2013.”

She said HMV had failed to gain from the demise of Zavvi in 2008 and will continue to come under pressure from online players and the supermarkets.

HMV has said it hopes to return to profit in the current year as it benefits from selling more video games following the collapse of Game.

It secured its immediate survival earlier this year following a refinancing deal with banks and better terms with key suppliers such as Universal Music.

Mr Wolffe, who joined HMV from ITV Studios in January 2011, will stay on until a replacement is found.

HMV has seen its share price fall from 140p before the financial crisis to just 3.5p, giving it a market value of about £15m.

As part of its turnaround plans, it sold its Waterstones book chain for £53m in 2011 to Russian billionaire Alexander Mamut and offloaded its landmark Hammersmith Apollo venue.

The company gave no indication of how long it would take to replace Mr Wolffe, who has a 12-month notice period in his contract, but said that it had no one lined up for the posi- tion.

Meanwhile, it has focused on its specialist ranges of music and DVDs and growing sales in portable technology and online and digital offers.

The company believes Mr Moore has the right skills to lead HMV forward as he revived Jessops’ fortunes by building closer relationships with suppliers such as Canon and Nikon after it was rescued by its bank, HSBC.

HMV, like Jessops, has struggled to define itself in an era of online dominance in the electricals and music business.

However both dominate their sectors with the largest presence on the high street in their particular areas.

For both companies in recent years, survival has been as important as dominance, something Mr Fox conceded yesterday.

“We have weathered a tough time, a time when survival was a challenge.

“However, I believe the company is now through that and can look forward to a period of sustained profitability.”