CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Sports Direct founder Mike Ashley in talks to buy music chain HMV

Sports Direct founder Mike Ashley has placed a bid to buy music chain HMV three weeks after the company fell into administration.

Mr Ashley is in talks to save the music retailer from administration after it collapsed last month putting thousands of jobs at risk.

Mr Ashley who owns more than 60% of Sports Direct, also owns the House of Fraser department store chain.

HMV said last month, a worsening market for entertainment CDs and DVDs was to blame for the move, with an increasing rise of streaming services dominating the market.

Mr Ashley lodged a formal offer to buy HMV before the January 15 deadline, along with other unknown bidders, however, it was unclear whether the bid was made through Sports Direct international or another corporate vehicle.

HMV falls into administration for the second time.

HMV has fallen into its second administration in six years, with the first in 2013, saved by owner Hilco.

When the chain fell into administration last month, Paul McGowan its executive chairman said HMV sold 31% of all physical music in the UK in 2018 and 23% of all DVDs.
Mr McGowan said the industry was predicted to fall by another 17% during 2019.

Analysts say Mr Ashley’s bid could be a good save for the company, as it comes just one month after the music company fell into its second administration.

KMPG to make decision in coming days

Joint administrator and partner, KPMG were called in to seek a buyer for the business, with all 125 HMV stores to remain open while negotiations take place.

‘The company has suffered from the ongoing wave of digital disruption sweeping across the entertainment industry’, said KPMG.
KPMG also said it has received "a number of offers on various bases."

"We now need to evaluate these further over the coming days," KMPG said.

HMV first opened on London's Oxford Street by English composer Edward Elgar in 1921 and made famous by the image of the "dog and trumpet".

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

See an opportunity to trade?

Go long or short on more than 17,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.