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Future for HMV looks bleak

The retailer releases its third profit warning of the year, causing shares to fall by 14p.

HMV has announced its third profit warning of the year, stating that profits before tax will be £30m. Shares in HMV fell 8 per cent as a result, to 14p.

The retailer has already reduced its expected profits twice this year, from £46m in January to £45m in March.

Two months grace has been given to HMV on its debt, and its banking facilities are still fully available, though some analysts expect the retailer to close stores or break up the business altogether. HMV has already sold off its Waterstones book shops.

The crisis for HMV is said to be in part due to an unprecedented drop in consumer confidence, and the fact that much of their business - which includes books, CDs, and games - has moved online.

By Liam McLaughlin

Liam McLaughlin is a freelance journalist who has also written for Prospect and the Huffington Post. He tweets irregularly @LiamMc108.