High Street entertainment retailer shores up immediate future with £220m deal.
Entertainment retail giant HMV has agreed a loan package with lenders worth £220 million.
The new agreement - which matures in September 2013 - replaces an existing £240 million facility. It comprises of two term loans of £70 million and £90 million, and a revolving credit facility of £60 million.
HMV - which is battling tough competition from supermarkets and the internet in its core markets of music, DVD and books - has issued four profit warnings this year. In January, it revealed that is to close 60 stores and cut costs, as well as shift its emphasis to the growth markets of new technology products, live music and event tickets.
"We are very pleased to have concluded the new bank facility, which represents another important milestone in securing the financial stability of the group," said chief executive, Simon Fox.
HMV said that current trading trends remained in line with the 14 per cent drop in total sales reported on May 20th.