HMV shares slump by another 25 per cent on Wednesday as landlords sue for more than HK$5 million in overdue rent

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Bid to find white knight seen as challenging; company says retail business ‘stuck in time’ and is considering liquidating or selling retail unit after landlords file lawsuits for unpaid rent

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A general view of HMV in Style House, The Park Lane, Causeway Bay. Music and DVD retailer HMV called in administrators after a last-ditch attempt to secure funding failed, putting more than 4,000 jobs at risk. The 239 stores in the UK and the Republic of Ireland will be kept open for the time being while they look for a buyer. Photo: Nora Tam

Enoch Yiu

Published: 12:44pm, 5 Dec 2018Updated: 10:13pm, 5 Dec 2018

HMV Digital China Group’s shares tumbled by a further 25 per cent on Wednesday amid concerns the company may liquidate or dispose of its loss-making retail units.

The company’s shares closed at 1.5 HK cents on GEM, down by 25 per cent from Tuesday when they fell by 80 per cent. GEM is the second board of the Hong Kong stock market, tailored towards small and medium-sized companies that have yet to post a profit.

Wednesday’s level was the lowest since the company, chaired by entertainment businessman Stephen Shiu Junior, listed in December 2000.

“In the past few months, HMV Retail Business in Hong Kong has been under siege from high rental fees, potential lawsuits, weakening local consumer sentiment and the worldwide rise of e-commerce,” the company said in a stock exchange filing on Tuesday night.

“HMV Retail Business has remained stuck in time. It may undergo future plans, but not limited to, restructuring, investment, liquidation and disposal.”

The company added it will issue an announcement once a decision has been made.