Shares in HMV Group are expected to fall on Wednesday morning after suppliers of CDs and DVDs to the retailer had their credit insurance on future sales withdrawn."Credit insurance is to enable suppliers to be protected from a company going bankrupt. It puts off new suppliers and makes old ones very wary about delivering stock. But no one wants to be solely dependent on the small profit margin from online and supermarkets.
It doesn't spell the end for HMV. Topps Tiles had credit insurance withdrawn and noticed no ill effects. It was restored soon enough. But it finished off MFI who collapsed soon after. So not the end but it isn't a good sign.
On the message board seems traders are having profits with HMV shares fluctuating between 24-26p.
Blaming Peston, which is a bit unfair. He's just passing on the message.
I wouldn't wish to be holding them in the morning!
Still, it could be worse. Take a look at Borders in the USA