HMV Secures Future After Refinancing Deal

HMV have secured its immediate future following a £220million refinancing deal led by Lloyds Banking Group and Royal Bank of Scotland.

The deal effectively means the British taxpayer now has a stake in the music retailer as both banks are state-backed.

Shares in HMV, which has issued four profit warnings in 2011, rose by 14 percent today (June 7) in the wake of the agreement, reports Reuters.

HMV employs 13,000 staff and is the main music retailer on the British high street.

But it has struggled in recent years with competition from supermarkets selling entertainment goods and the continued growth of digital downloads.