Music labels rally around troubled HMV

The biggest names in the music industry has thrown its support behind trouble entertainment chain, HMV.

In a letter to The Times, the seven biggest names in music – including Universal chairman David Joseph, Sony Music’s Ged Doherty and Warner Music UK chief executive Christian Tattersfield – praised the retailer for its ‘vital role’ in breaking new artists.

The news comes on the back of troubled times for the entertainment chain. The firm saw its stock market price fall 8.5 per cent yesterday after it emerged the firm’s credit insurance was under review.

The company has also announced it will close 40 HMV stores (and 20 Waterstones outlets), and is currently restructuring its Head Office.

These music chiefs say nothing has changed in terms of trading.

They said: "We are each continuing to supply HMV with our music and they are continuing to do much more than sell it; their unique approach plays a vital role in breaking new artists and supporting British culture in the broadest sense.

"HMV is at the heart of our industry, and they have full support from each of us."

Without insurance cover, HMV’s suppliers are at risk of losing out if anything should happen to the entertainment giant – the same suppliers stung over the demise of Woolworths and Zavvi.

But HMV has dismissed comparisons to that situation, pointing out that they are in-fact a profitable business.

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