HMV

HOT OF THE PRESS!! - WORD IS PERMIRA ARE TO COMBINE WITH BAUGUR TO BID FOR BOTH HMV AND WLW WITH THE INTENTION OF ADDRESSING THE HIGH ST ENTERTAINMENT COMPETITION ISSUE (BY COMBINING APPROPRIATE STORES AND CONSOLIDATING THEM UNDER THE MORE VENERABLE HMV BRAND). THE RATIONALE IS THAT THIS WILL ALLOW THEM TO COMPETE MORE EFFECTIVELY WITH THE SUPERMARKETS (IT IS UNDERSTOOD THE SAME TEAM THAT WAS LINED UP FOR HMV DURING PERMIRA'S FAILED BID IN FEBRUARY OF THIS YEAR ARE IN PLACE AND THEY INTEND TO AGGRESSIVELY PUSH INTO ONLINE SALES TOGETHER WITH A 'TIE-UP' WITH APPLE - ADDRESSING THE AREA OF THE DIGITAL MARKET THEY ARE PRESENTLY MISSING OUT ON).
BAUGUR WILL BE LEFT WITH THE 'OVERLAPPING' STORES (WHICH THEY INTEND TO RE-POSITION IN THE MARKET SEGMENT WHERE 'TESCO EXPRESS' ARE PRESENTLY POSITIONED) AND THE ENTERTAINMENT SIDE BEING SOLD TO REDUCE DEBT.
SOURCES SAY THAT WATERSTONES WILL BE RETAINED BY PERMIRA WITH THE INTENTION OF ORGANICALLY GROWING THE BUSINESS FOLLOWING THE OTTAKARS INTEGRATION.

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