EMI Reports Huge Annual Pre-Tax Loss As Doubts Are Cast Over Its Future

It needs big injection...

February 05, 2010 by Jason Gregory

EMI Reports Huge Annual Pre-Tax Loss As Doubts Are Cast Over Its Future

Record label EMI has reported a huge annual pre-tax loss of £1.5bn, casting doubt over its future.

The label, which was bought by private equity company Terra Firma for £4bn in 2007, now requires investors to inject a further £120million.

If unsuccessful, lender Citigroup could take control of the business as early as June, reports the Telegraph.

As well as falling record sales, EMI has been blighted by heavy debts, which include high restructuring and financing costs.

Terra Firma's controversial buyout of EMI in 2007 came just months before the economic downturn took hold.

The company's restructuring efforts included cutting 2,000 jobs in a bid to stop spiralling costs.

The 115-year-old record label is home to the likes of Robbie Williams, Coldplay and Goriallaz.

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