The UK-based HMV Group, retailer of books, video and music, is set to sell its Japan business for £70 million. According to officials, the deal with DSM Investment Catorce will allow it to focus on countries where it is a market leader.
Last month HMV revealed profits that had more than halved as it battled against competition from supermarkets and online retailers. Chief Executive Simon Fox informed that the proceeds of the sale will be used to pay down debt, and that the deal represented the best value for its shareholders.
Opening in Tokyo’s Shibuya district in 1990, HMV Japan now has 62 stores, with about 40 million visitors a year. Globally, HMV made pre-tax profits of £48.1 million before exceptional items in the year to April 28, down from £98.2 million a year ago. This was despite sales growing by 3.8 per cent to £1.9 billion.
