HMV’s admission last week that it may well breach its bank lender covenant has led to a weekend of fervent speculation in the media.
Retail Week reports that Apollo Global Management last week acquired ten per cent from Allied Irish Banks, sparking rumours that it is lining up an acquisition.
The retailer’s tumbling share value – which has since January this year slipped from 7.15 to just 2.45 – means that any buyout would be potentially cheap, although the debts that would come with any such move would be more problematic.
The Express goes as far as to claim that the chain’s 4,500 jobs are at risk, with lenders such as The Royal bank of Scotland reportedly sounding out prospective administrators should Christmas trading fall further below expectations”.
A source adds: Christmas trading will be crucial. The banks could pull the trigger if they don’t want to support the business any more and they feel that their risk is getting higher and higher.”