HMV snap up five Zavvi Ireland stores

Following a dramatic 24 hours of music industry activity, three major deals have greatly strengthened the position of HMV in the UK and Ireland this week.

In Ireland, with immediate effect, HMV have completed the purchase of five of the Zavvi chain of entertainment shops. The stores in question are Dundalk, Dundrum (Dublin), Liffey Valley (Dublin), Limerick and Newbridge (Co.Kildare). The move has protected the jobs of the 110 workers currently employed in the five stores, which will transfer to HMV ownership straight away, and seamlessly continue trading.

It is uncertain yet what the future holds for the remaining Irish Zavvi stores in Cork, Arklow, Sligo, Athlone and Kilkenny.

"It is a great deal for everyone," one leading record company executive told Hot Press. "It removes an element of uncertainty, saves jobs that were at risk and gives HMV additional critical mass that they can exploit. They are very good at what they do, so from a supplier's perspective, it's a very welcome development."

Meanwhile, in the UK, HMV have announced a move into the live music space, in what is being described as a 'strategic partnership' with The MAMA Group – the UK's second largest multiple live music venue operator. Under the terms of the deal, HMV will acquire 50% of a new joint venture company, containing 11 MAMA Group venues.

The agreement includes some of the UK’s best-known live music venues, which attract around two million concert-goers each year, including the legendary Hammersmith Apollo in London, which will be renamed the HMV Apollo. Further properties owned by the joint venture include the London venues The Forum, Heaven, Garage, Jazz Café, Borderline, G-A-Y and G-A-Y Late, as well as the Picture House in Edinburgh, Institute (formerly Sanctuary) in Birmingham and Moshulu in Aberdeen. "The joint venture will actively seek expansion where high-quality, larger size venues become available," a HMV spokes person told Hot Press.

In addition to the Apollo, the deal includes 10 year naming rights for what will now be called the HMV Forum, the HMV Picture House and the HMV Institute.

The joint venture is part of an overall strengthening and repositioning of HMV. "The board has concluded that that the live music market represents a potentially exciting opportunity for HMV," the spokesperson added, citing a market worth £1 billion in the UK alone, a "product that is of strong interest to HMV's core customers" and the fact that it offers the possibility of powerful synergies with HMV's current activities.

In addition to this ground-breaking partnership, HMV has also entered into a separate agreement with Seatem – a leading UK ticket agency – to sell tickets through its stores and online at hmv.com to events at the joint venture MAMA Group venues, as well as to a wide range of other events and venues such as the O2 Arena, and including music concerts, theatre productions and some sports events.

hmvtickets box offices are already 'live' in 4 stores: in London (Oxford Street) – HMV’s flagship store; Covent Garden and Trocadero Piccadilly, and in the Birmingham High Street store. A roll-out of 20 more hmvtickets box offices are expected over the coming months.