HMV wins approval for sale of Waterstone's

STRUGGLING entertainment retailer HMV has taken a step forward in its recovery drive after shareholders overwhelmingly backed a £53 million plan to sell its Waterstone's book chain.

Investors in HMV, famous for its Nipper the dog logo, cast more than 99 per cent of votes in favour of the planned sale of Waterstone's to Russian billionaire Alexander Mamut.

The sale is a key part of plans by the ailing chain to overcome the economic downturn, intense competition from supermarkets and internet retailers and fast-growing digital downloading.

Earlier this month, the 90-year-old retailer secured its immediate future with a 220m refinancing deal with lenders.

It is trying to reshape its business by selling more gadgets like iPods and headphones and expanding its live music and event ticketing operations and closing 60 stores and slashing costs.

The group, which employs 13,000 staff, plans to use the proceeds of the sale of Waterstone's to cut its 170m debt pile.

Mamut plans to overhaul Waterstone's to give it a fresh image as a local community bookseller.

The company said last month that the disposal, which also depended on consent from lenders, represented "an important step towards strengthening the capital structure of the remaining HMV Group."