HMV Group has agreed to sell struggling books retailer Waterstone’s to A&NN Capital Fund Management for £53 million.

HMV Group has agreed to sell struggling books retailer Waterstone’s to A&NN Capital Fund Management for £53 million.

The group says its disposal of the books business will enable management to focus on the turnaround of entertainment retailer HMV and also reduce its borrowing requirements in order to achieve a refinancing.

Fund management vehicle A&NN Group is owned by a trust in which Russian billionaire Alexander Mamut has an interest.

Commenting on the disposal, he says its investment and strategy will secure a ‘dynamic future’ for the bookshop chain.

‘This represents an important step towards strengthening the capital structure of the remaining HMV Group and will allow management to continue evolving the group’s strategy to deliver the greatest value from the HMV UK and Live businesses,’ says a statement.

The sale is conditional upon shareholder approval, as well as from the pension trustee, the Pensions Regulator and consent from HMV Group’s lending banks, including a renegotiation of the group’s lending facilities.

The deal is expected to reach completion by the end of June this year.

The group cited the continuation of weak entertainment market trends in the UK, adding, ‘Waterstone’s sales deteriorated due to weakness in the book market and some loss of share.’

Mamut, a friend of Chelsea FC-owner Roman Abramovich, already owns a 6.7 per cent stake in HMV Group.

Waterstone’s operates through 296 stores in the UK and employs 4,500 people.