HMV snaps up 14 Zavvi stores

HMV has acquired 14 Zavvi stores from its rival’s administrators, Ernst & Young.

HMV expects the cost of its acquisition to be around 2m, including a purchase price of 700,000 plus the refit and rebranding of the outlets.

The locations of the stores are currently unclear, but they are in areas that HMV does not currently own outelts. The portfolio features nine stores in the UK and five in Ireland

An HMV financial statement to the City revealed that the company expected to benefit from the closure of Zavvi and Woolworths. It read:

‘Significant recent changes to the high street retail environment provide market share opportunities albeit against an uncertain consumer backdrop.’

In other news, HMV has announced a new plan to invest in live music venues, through a 50:50 joint venture formed with MAMA Group PLC – which will own 11 leading mid-to-large size venues with a UK-wide reach.

HMV Group CEO Simon Fox said:

I am also pleased that we have taken our first steps beyond the current three year plan. Music is very much part of our DNA, and by extending the HMV brand into the growing live music and entertainment market, our customers will be able as never before to access and experience music in all of its forms via HMV.”