HMV’s future is looking increasingly shaky, with the most recent speculation coming in that Apollo Global Management could be set to buy up the ailing technology and media retailer.
Share prices have continued to crash in recent weeks, seeing it drop to mere pence. While this means that any buyout would be a pretty cheap one, it also suggests that anyone considering doing so, will have their work cut out for them in terms of turning the business around.
If a buyer doesn’t weigh in on HMV’s behalf however, Christmas sales could be make or break for it. If they’re up, then the banks may well agree to a continuation of its current lending facilities. If it doesn’t however, that could spell the end of the retailer for good. Considering it has more than 90 years of history, that would be a sad day indeed.
Also, with over 4,500 people working at HMV in some capacity, there’s a large body of people with their livelihood on the line. This harkins back to this time last year when GAME was going through similar problems. While it eventually emerged from the debris still standing, lots of stores and jobs were left in its wake.
KitGuru Says: Hopefully we won’t see the same sort of thing happen with HMV. If we do, it will need to reinvent itself if it wants to stay relevant in 21st century shopping.