After just two years of ownership, HMV has sold iconic music commercial property, The Hammersmith Apollo to music entertainment network Stage C for a price tag of £32 million.
The art deco building opened as the Gaumont Palace cinema in Hammersmith, London in 1932 and the 5,000-capacity commercial property has played host to a diverse line-up of legendary entertainment acts over the years, including The Beatles, Oasis, Queen and David Bowie.
“The Hammersmith Apollo is an iconic London venue and it has been a privilege to own it over the last three years,” noted HMV Group chief executive Simon Fox. The sale puts the Hammersmith Apollo in the pocket of Stage C, a company whose subsidiaries also own another major commercial property, the 02 Arena.
The Hammersmith Apollo isn’t the only part of the company’s assets to come under scrutiny, as the future of other venues and festivals under the HMV Live division are also under review, including the Lovebox Festival in London and Global Gathering near Stratford-upon-Avon.
The decision – an effort on the part of HMV to chip away at their mounting debts and focus on their dwindling HMV retail brand – comes in the wake of financial losses to the tune of £19 million this year as consumers steer clear of the high street and flock to online stores like Amazon.co.uk for better bargains.
The sale will see the company’s £220 million worth of bank loans extended until 2014, according to HMV. The former music and retail giant also optimistically predicted a return to profits in 2013, with chief executive Fox adding, “The sale will enable HMV to extend its bank facilities, strengthen its capital structure and ensure a strong future for the group.”
But despite the brave face, will offloading one of their major assets give HMV enough financial clout to carve themselves a return to profits, or turn out to be another unfortunate blow for the ailing company?
