HMV warns that profit will be at lower end

City A.M. Reporter
Music and books retailer HMV said full-year profit would be around the lower end of forecasts and meeting the terms of its lending rules would be tight after bad weather hit Christmas trade.

HMV, which has been battling for years with competition from supermarkets and the internet, said on Wednesday it would exit about 60 British shops over the next year and take further steps to ensure it meets a test of its lending rules in April.

"The pace of change in the markets in which we operate underlines the urgency with which we must continue to transform this business," said the firm's chief executive Simon Fox.