Record labels to help potential HMV buyers save UK retailer
updated 07:16 pm EST, Sun January 20, 2013
Discounts on stock, lines of credit to prolong physical media sales
Major record labels will help keep British music retailer HMV stores running by offering potential buyers heavily discounted stock. Reports claim that Universal Music, Warner Music, Sony, and others will offer whatever company steps in to run the music chain help in keeping physical music and movie sales in the High Streets and away from Internet retailers.
Sources of The Sunday Times say that the aim of larger entertainment firms is to prevent entire catalogs of media being sold solely through Internet distributors and supermarkets, something that will force the wholesale prices lower than they currently are. Though HMV succumbed to financial difficulties earlier this week after low seasonal sales, it is believed that the retailer still represents for a fifth of music and DVD sales in the UK.
There are allegedly over fifty entities wanting to buy part or all of HMV from its administrators. Computer game store chain Game is said to be bidding for up to 50 of the 239 store locations in order to expand its presence, an ironic note given that Game headed into administration in March last year before being rescued by OpCapita.
