New supply terms may ease HMV debts
The future of ailing music and film retailer HMV is looking more secure after suppliers including Universal Music came to its rescue. The loss-making group, which owns around 250 stores in the UK, said it had signed better terms with key suppliers in a move which will ultimately help it shed around half of its £180 million debt pile over the next three years. The deal is a sign that the music and film industry is willing to support high street retailers at a time when online shops provide intense competition and internet piracy damages trade. The agreement was enough to persuade the banks to amend existing loan agreements.