'Material uncertainties' over HMV future

Another of the UK's most familiar high-street retailers of tech, games and music looks in dire straits, with HMV admitting there are 'material uncertainties' over its continued existence.

The group is most famously associated with music sales, but with the digital world beginning to put pressure on physical sales, it has pushed hard into selling devices.

"This has been a challenging start to the year," admitted HMV chief executive Simon Fox. "However, we have taken decisive action to restructure the business and are now seeing the benefits of this, particularly in our technology products business.

"Like all consumer-facing companies we are facing tough trading conditions but we continue to push forwards through this period."

Loss

A loss of £36.4 million has left HMV considering selling more of its assets – as it did with the Waterstone's book chain.

"The economic environment and trading circumstances create material uncertainties which may cast significant doubt on the Group's ability to continue as a going concern in the future," the company said in a statement.

"The Directors continue to maintain regular and constructive discussions with the Group's banks."

This year has already seen the high-profile failure of Best Buy in the UK, and it's clear that online shopping and the poor financial climate have made it tougher than ever to be a high-street shop.

Via Guardian