HMV yesterday announced that it had exchanged contracts on the disposal of the leasehold for its store at 360 Oxford Street to US fashion retailer Forever 21, for £13.75m.
In a statement HMV said the money will be used to reduce debt.
It said that it will also work hard to transfer sales to its existing flagship store at 150 Oxford Street and its Trocadero outlet, as well as to its concession at Selfridges, which is near the store being sold.
It is understood HMV will also invest in both Oxford Circus and Trocadero stores in a bid to pull in more customers in the tough consumer climate.
Chief executive Simon Fox said that the deal represents great value for shareholders in the current economic climate.
“We are confident of consolidating a proportion of the store’s sales into the remainder of HMV’s West End estate, including our flagship store at Oxford Street, where we recently extended our lease for a further 10 years,” he said.
“HMV’s strong London presence will also enable us to redeploy our store colleagues from 360 Oxford Street to stores within a reasonable travelling distance,” he added.