Wednesday, 14 January 2009

HMV buy 14 Zavvis

The end has pretty much come for Zavvi as it starts to get broken up and sold piece by piece.

HMV has snapped up 14 of them and also some music venues like the Hammersmith Apollo, well woop be doop for HMV.

I never realised that when Richard Branson sold Virgin to the management buyout it had just made a £48 million pound loss, the use of the word sold implies that they gave him money to buy Virgin, but i've looked really really hard and can find no mention of the figure.
This leads me to believe it wasn't really sold but more like given away, with Richard Branson agreeing to underwrite a certain element of future debt.
To be fair none of the past 9 months could have been anticipated but the wounded animal has limped as far as it can go, and now it dies, boo hoo.

September last year, the board announced that they had managed to stem losses by £10 million and where making good progress, i'm not a mathematician by any stretch of the imagination but that means you made a loss of £38 million, down from £48, bugger, yes £38 million.
That should have been a big warning to everyone that things were not rosy.

BUT, Richard Branson can still use the line that no Virgin business has ever failed, i still don't know how he managed to get NTL to buy Virgin and re-brand all to Virgin.
Shrewd guy, read his book and hes good, quite admire him, starting an airline and knocking lumps out of BA, high 5 for that.
He wrote a great letter to all his cabin crew that were considering striking for more pay, the letter was great, will find it and post it tomorrow, but he managed to get the cabin crew to agree to shut the F**k up and get back to work.

Feckin unions, i hate them.

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