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Universal liable for HMV High Street rent following EMI deal - report

RHIAN JONES
HMV

Universal is reportedly liable for the rent on approximately 40 HMV stores after its £1.2bn acquisition of EMI last year.

EMI guaranteed rental agreements on HMV stores when the retailer was spun off from the record label in 1998.The rental bill could reach £150m if HMV went into administration and the stores were not re-let.  

It is understood that Universal have already provided about £40m of financial support to HMV and suppliers have also taken a 5% stake in the struggling retailer after activating warrants that were issued over the shares.

This month, HMV is expected to unveil a series of further tie-ups with suppliers.

Source: The Telegraph

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Tags: universal, emi, Universal/EMI, HMV

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