Struggling retail commercial property chain HMV Group plc have announced the appointment of Trevor Moore as new Chief Executive, following Simon Fox’s decision to move on from the company after six years at the helm.
HMV commercial properties have had a troubled few years, starting with the beginning of the recession in 2008. As well as a drop in custom, the retailer has had to compete with online markets, in particular Amazon and play.com, with downloadable content retailers such as iTunes only adding to their woes. However, with commercial property chains such as the GAME Group having succumbed to financial pressures which have forced them to enter administration, Mr Fox can be said to have performed admirably in the face of extreme pressure. In fact, the store’s survival is one of the most positive stories in British retailing of the past few years.
Mr Fox says; “Just eighteen months ago we were in serious distress and we have got through it with the support of our suppliers and banks and we can look forward to a profitable future.”
In order to keep the commercial property chain afloat, Mr Fox was forced to make some tough decisions in his position as Chief Executive. As the economy continued to fail, he responded by closing stores, selling off brands which came under the umbrella of HMV and negotiating with suppliers and financiers in order to gain the best possible opportunities for the troubled chain. The fact that HMV has, so far, survived in a time where many retailers have had to enter administration is a commendable legacy to leave behind him.
This year, HMV commercial properties are expected to report a £16 million loss for the past year, yet the future appears to be brighter. In fact, the chain forecasts a £10 million profit for the year ahead – perhaps a sign that retailing overall may once more pick up in 2012.
Mr Fox continues; “I am proud to be leaving HMV with a profitable future secured. The appointment of Trevor Moore means that I will be leaving the company in safe hands.
“I hope I leave my successor with a little bit of wind to his back rather than a hurricane in his face.”
Trevor Moore joins HMV from his post as Chief Executive of camera chain Jessops – a commercial property business which, itself, has struggled in recent years as a direct result of the economic situation both in Britain and in Europe as a whole. However, he also has an impressive history of working well in consumer facing businesses such as Whitbread and HSBC.
Chairman of HMV Group plc, Philip Rowley, today commented on the change of directorate for the commercial property chain.
He said; “On behalf of the Board, I would like to thank Simon for his contribution to HMV.
“He has led the company through a turbulent period for the entertainment retailing industry and has played an invaluable part in securing HMV’s future, not least by strengthening relations with suppliers and successfully refinancing HMV’s bank borrowings.
“We are delighted to have recruited someone of Trevor’s calibre. He has the right skills and experience to lead HMV in the coming years.”
Mr Fox will continue to act as Chief Executive for the commercial property entertainment retailers until September 3rd, at which point Mr Moore will officially take up the position. This is to ensure a smooth handover and will allow Mr Moore to adjust to his new role as Chief Executive of a business which, despite the positive predictions for the future, still has a long way to go until it becomes the powerhouse of British retailing that it once was.
Do you think HMV Group plc have made the right decision in choosing Trevor Moore as the new Chief Executive for the commercial property chain? Will entertainment retailing pick up again, or do you believe that internet stores such as Amazon and play.com will prove to be too competitive for HMV to keep up with?
