HMV mulls potential break-up of its live entertainment arm
MUSIC chain HMV is said to be considering a break up of its live entertainment business as it struggles to drum up interest from bidders for its festivals arm.
Earlier this year, HMV hired bankers at Citigroup to find a buyer for its profitable HMV Live division, which runs 13 music venues and stages five festivals, to help cuts its £180m debt pile.
But it is now considering a deal that would see it retain the festivals such as Lovebox but sell the entertainment venues including London’s Hammersmith Apollo, according to Sky News.
American entertainment giant AEG, the owner of the O2, was reported this weekend to have been granted preferred bidder status for HMV’s venues, which also include the Jazz Cafe in London and the Ritz in Manchester.
AEG is understood to have beaten off competition from several other interested bidders including Sony Music and private equity group Oakley Capital, the owner of Time Out.
HMV, which has issued a string of profit warnings over the past two years, secured a crucial lifeline with its banks in January, which eased its covenants in return for the company granting its key suppliers warrants over 2.5 per cent of its equity.
HMV declined to comment.