HMV Group, owners of the chain of HMV media stores and Waterstones, is reportedly thinking about selling the bookseller becuase of financial difficulties. HMV didn’t have a good holiday season in 2010, and it revealed yesterday that it might default on ts bank loans. It looks like it might be better off selling Waterstones so it can focus its efforts on rescuing. the HMV chain.
Coincidentally, Waterstones reported having good sale this past year, so its actually in better financial shape than its parent. Nevertheless, Waterstones has also taken some minor steps to save costs, including closing unprofitable stores and reducing stock on hand. But that doesn’t appear to be saving enough money, hence the sale.
Waterstones founder Tim Waterstones is interested in buying back his company. There’s talk that he is working with Russian tycoon and HMV shareholder Alexander Mamut, who is also reportedly interested in buying Waterstones.
via Retail Week