A Little Help From
HMV’s Friends

Entertainment retailer HMV is receiving reinforcements for the vital Christmas trading period with funding of around £40 million from its suppliers, according to The Daily Telegraph.

The Telegraph says music publishers and film studios are desperate to see the beleaguered high street chain prosper as Internet retailers erode their margins and online piracy damages sales.

Earlier this year, former HMV chief exec Simon Fox handed out 2.5 percent of its equity to suppliers prepared to cut their prices and agree easier payment terms.

It effectively means suppliers such as Universal, Sony, EMI and Warner would stock HMV on what amounts to a sale or return basis.

Quoting Industry sources, the Telegraph says the value of the credit being extended to the once great entertainment giant will increase by $40 million, which will enable it to stock more back catalogue during the lead-up to Christmas.

At the end of September, HMV released an interim statement saying a “very quiet” summer release schedule had caused year-on-year sales to drop by 11.6 percent, but seasonal sales and new releases such as the Nintendo Wii console, a new One Direction album, and the “Dark Knight Rises”  DVD would claw back some of the lost ground.

HMV, which has recently sold MAMA Group to cut debt, is to publish its interim results and a Christmas trading update Dec. 14.