Faxon’s Plan For EMI Turnaround

New EMI Group chief exec Roger Faxon is to present his Terra Firma boss Guy Hands with his plans for turning around the struggling music label, according to the New York Post.

Now that Hands has raised the money to keep U.S. bankers Citigroup off the company’s back for a year, the paper believes Faxon may return to the idea of doing deals on its American catalogue.

Charles Allen, the executive chairman Faxon effectively replaced, had tried to license the company’s American catalogue to Warner, Sony, or Universal. But he turned out to be on a weak negotiating platform as the rival majors feared their position if Citigroup foreclosed.

Faxon’s plan is said to include new distribution deals and securitizing assets on the publishing side.

EMI boasts successful artists such as Katy Perry, Coldplay and Robbie Williams.

Distribution deals, which involve outsourcing the delivery and sale of music to retailers and digital distribution platforms, would help EMI cut its internal sales and marketing expenses.