HMV hits the wrong note again

Music and book retailer HMV, owner of the Waterstone's book chain, has issued a fourth profit warning in six months. Earnings are expected to be around £40m - 46% down on the previous year.

Music and book retailer HMV, owner of the Waterstone's book chain, has issued a fourth profit warning in six months. It said that earnings for the year to April would be around £40m, 46% down on the previous year. Net debt would be £130m, far higher than analysts had expected. The group also admitted that it expected to breach its banking covenants in April. Meanwhile, Robert Swannell resigned after a two-year stint as chairman. The shares slumped by 22% on the news and are at a record low.

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