Major labels in rescue deal package for "too big to fail" music chain
MAJOR music labels and film studios are poised to offer a rescue package to prevent HMV from going out of business, according to the Sunday Times.
Sony, Universal and Warner will reportedly slash CD and DVD prices in an attempt to revive the entertainment retailer, which went into administration last week. They will also offer improved credit terms for the beleaguered chain, whose receivers Deloitte are still in the process of trying to secure a buyer for the company.
That process could be smoothed considerably by the new deal, designed to keep the doors open on a vital point of sale for the struggling entertainment industry, whose profit margins have already been hit by rock-bottom pricing from supermarkets and online retailers like Amazon.
Too big to fail, then? Guess we’ll have to wait and see.