HMV suppliers are resisting the retail chain’s attempt to buy stock provided to it under a loan agreement at significantly cut prices.
Prior to going intoadministration, HMV struck a deal with its suppliers that meant it only had to pay for stock once it had been sold in store to customers. Many of the CDs, DVDs and video games currently on HMV shelves, therefore, are still owned by their respective supplier.
Deloitte has offered to buy up the stock at a price of 12p in the pound, according to Financial Times sources, but some suppliers have complained that the offer is still significantly lower than standard retail deals of 65-70p in the pound.
The FT reports that some content owners including Universal and Warner Music have accepted the offer and agreed to resume supplying the entertainment retailer.
Those still holding out, however, may not be able to for very long. “The consignment belongs to the supplier but how are you going to get it back?” an executive at one supplier asked the FT. “They have effectively got us over a barrel. Do you send bailiffs into the stores to look through the individual racks?”
Yesterday, the HMV twitter account was used by an employee to ‘live tweet’ a round of firings that affected 190 staff including CFO Ian Kenyon.