One of HMV’s largest shareholders has defended the management of the embattled entertainment retailer after a difficult month of profit warnings and reduction of credit insurance.
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Andy Brough, executive director at Schroder Investment Management, which owns more than 6% of the shares, said: “These are two profitable businesses and the suppliers are happy to continue to support HMV.
“The management should be left to get on with developing a medium-term strategy.”
The retailer, which owns the eponymous chain as well as bookseller Waterstone’s, had a weak Christmas which led to it warning on profits as well as cautioning that it may breach its banking covenants.
The group has also outlined plans to close 60 shops and has had its credit insurance scaled back, although HMV boss Simon Fox insists it has not suffered any difficulties with stock as a result.
HMV has hired KPMG to help restructure its debt.