Following doubt that it will be able to continue trading into the near future, UK retailer HMV has now revealed that its banking syndicate has granted the company an amended waiver for its existing borrowings that may allow it to continue trading.
HMV is one of the leading video game, music and video retailers in the UK, and currently operates over 250 stores across four countries.
The company said in a statement last month that it has "significant doubt on the Group’s ability to continue as a going concern in the future," after posting a decline in revenue, and notable losses for the first half of the current fiscal year.
However, the banks have now agreed to waive a covenant test which was due to be evaluated this month, and will instead reassess the company's finances later this later.
The company now believes that it will be able to reduce its net debt by around 50 percent over the next three years as a result.
HMV chief executive Simon Fox explained, "Today's announcement is enormously welcome. These developments represent a material improvement in our financial position relative to the statement we made at the time of our Interim results."
"The new relationship with our suppliers and the support of our banks will now enable HMV to wholeheartedly focus all of its energies - working in close partnership with its suppliers, on serving the changing needs of its customers ever more effectively."
