HMV shares surged yesterday after chief executive Simon Fox remained upbeat on the entertainment retailer’s future.
Speaking at the Retail Week Conference on Thursday Fox said talks with HMV’s banks are “very positive”, adding that he is very confident the talks will end satisfactorily.
However he warned that media reporting of HMV’s “premature death” was destabilising and unsettling for staff.
Shares surged 32% to 15.25p on the back of his upbeat comments.
“It will take some weeks, possibly months, to renegotiate terms but it’s moving in the direction we want it to move in,” said Fox.
The retailer, which has issued two profit warnings this year, is in talks with a consortium of eight lenders regarding its lending facility. In January HMV warned the retailer was in danger of breaching its covenants after a disastrous Christmas.
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