HMV sells off Japanese business

Subject to the usual business processes being duly completed, the deal should see HMV's 62 stores and the hmv.co.jp website change hands by the end of August.

"Following recent consolidation in the market for entertainment retailing in Japan and our review of the strategic options for HMV Japan, we have decided that this sale represents the best value for our shareholders," said Simon Fox, chief executive of HMV Group.

"The sale of HMV Japan enables the group to focus on the markets where it has market-leading positions. The proceeds will be used to pay down the group's debt, which is an important step towards meeting our medium term leverage targets."

The first Japanese HMV store was established in Shibuya, Tokyo in 1990 and the chain now receives over 40m visitors every year, making it the country's number three entertainment retailer in terms of market share.

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