This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-13466179
The article has changed 8 times. There is an RSS feed of changes available.
| Version 4 | Version 5 |
|---|---|
| HMV sells Waterstone's book chain to Alexander Mamut | HMV sells Waterstone's book chain to Alexander Mamut |
| (about 1 hour later) | |
| Troubled retailer HMV has agreed to sell its Waterstone's book chain to a fund controlled by Russian billionaire Alexander Mamut for £53m. | Troubled retailer HMV has agreed to sell its Waterstone's book chain to a fund controlled by Russian billionaire Alexander Mamut for £53m. |
| Mr Mamut already owns 6% of HMV, which has issued a string of profits warnings this year. | Mr Mamut already owns 6% of HMV, which has issued a string of profits warnings this year. |
| The sale to his firm A&NN Capital Fund Management still needs shareholder approval, but HMV said the deal should be finalised by the end of June. | The sale to his firm A&NN Capital Fund Management still needs shareholder approval, but HMV said the deal should be finalised by the end of June. |
| HMV has estimated debts of £170m and is under pressure to raise cash. | HMV has estimated debts of £170m and is under pressure to raise cash. |
| Only last month it said it expected annual profits to be about 25% lower than it had hoped. | Only last month it said it expected annual profits to be about 25% lower than it had hoped. |
| The retailer has been struggling to cope with declining sales in the face of increasingly fierce competition from supermarkets and online retailers such as Amazon and iTunes. | The retailer has been struggling to cope with declining sales in the face of increasingly fierce competition from supermarkets and online retailers such as Amazon and iTunes. |
| It announced on Friday that like-for-like sales, which strip out the impact of sales from stores open less than a year, for the 12 months to the end of April slumped by 13.7%. Like-for-like sales at Waterstone's fell by 3.8% over the same period. | |
| The sales slide has become worse since the start of the year. In the 17 weeks to 30 April, like-for-like sales at HMV stores in the UK and Irish Republic fell 15.1%, and were down 8.4% at Waterstone's. | The sales slide has become worse since the start of the year. In the 17 weeks to 30 April, like-for-like sales at HMV stores in the UK and Irish Republic fell 15.1%, and were down 8.4% at Waterstone's. |
| Amazon said this week that it was selling more e-books in the UK than hardbacks, underlining the pressure on High Street book chains such as Waterstone's. | Amazon said this week that it was selling more e-books in the UK than hardbacks, underlining the pressure on High Street book chains such as Waterstone's. |
| Globally, the online retailer is now selling 105 e-books for every 100 printed books. | Globally, the online retailer is now selling 105 e-books for every 100 printed books. |
| It added that sales of e-books so far this year were three times the number sold in the same period of 2010. | It added that sales of e-books so far this year were three times the number sold in the same period of 2010. |
| 'New home' | 'New home' |
| HMV said it had little choice but to sell the book chain. | HMV said it had little choice but to sell the book chain. |
| "It has become clear that the group needs to reduce its borrowing requirements in the short term in order to achieve a satisfactory refinancing," the company said in a statement. | "It has become clear that the group needs to reduce its borrowing requirements in the short term in order to achieve a satisfactory refinancing," the company said in a statement. |
| "The board has concluded that the most timely and effective way to achieve this is through the disposal of Waterstone's." | "The board has concluded that the most timely and effective way to achieve this is through the disposal of Waterstone's." |
| Simon Fox, chief executive of HMV Group, said the sale to Mr Mamut "provides a good new home for the business". | Simon Fox, chief executive of HMV Group, said the sale to Mr Mamut "provides a good new home for the business". |
| Mr Mamut said he was "extremely pleased to have reached an agreement to acquire Waterstone's and its great heritage". | Mr Mamut said he was "extremely pleased to have reached an agreement to acquire Waterstone's and its great heritage". |
| New direction | New direction |
| James Daunt, who has a chain of six bookshops in London, Daunt Books, will run Waterstone's once the deal is finalised. | James Daunt, who has a chain of six bookshops in London, Daunt Books, will run Waterstone's once the deal is finalised. |
| He will carry out a review of the business, which currently comprises 296 Waterstone's bookstores, employing about 4,500 people. | He will carry out a review of the business, which currently comprises 296 Waterstone's bookstores, employing about 4,500 people. |
| Mr Daunt said the deal would "secure a dynamic future" for the company. | Mr Daunt said the deal would "secure a dynamic future" for the company. |
| Alexander Mamut signalled a potential change in direction for the UK's largest bookshop chain. | Alexander Mamut signalled a potential change in direction for the UK's largest bookshop chain. |
| "The opportunity ahead to reposition Waterstone's as a regional and local community-orientated bookseller is an exciting one," he said. | "The opportunity ahead to reposition Waterstone's as a regional and local community-orientated bookseller is an exciting one," he said. |
| "The business enjoys a great loyalty from its customers and I believe that there is considerable integrity and value in the brand." | "The business enjoys a great loyalty from its customers and I believe that there is considerable integrity and value in the brand." |