Suppliers pledge £40m worth of support for HMV

Suppliers pledge £40m worth of support for HMV

Music labels and other entertainment suppliers are backing HMV with more than £40m of funding in the run-up  to Christmas.

That's according to The Telegraph, which reports that the financial boost is in addition to other measures secured last year between HMV and its suppliers in order to keep th retailer stable.

It says HMV has secured greater access to music and film suppliers’ back catalogues and is buying stock on consignment - i.e. only paying for the stock it sells.

Suppliers have also taken a 2.5pc stake in HMV after activating warrants that were issued over the shares in Q4 2011.

HMV's quarterly results in August showed it had already booked £15m to its income statement following the deal with suppliers, says The Telegraph.

The retailer's Christmas trading update to investors is due tomorrow morning.

Story originally published on sister site Music Week

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Tags: Retail , HMV , funding , $40m , suppliers

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