Investing.com - Hong Kong-listed HMV Digital China Group Ltd (HK:8078) said in a statement that it had agreed to sell its cinema business in mainland China.
HMV is selling the entire issued share capital of CineUnited Circuits Company for approximately CNY17.3 million. HMV expects a gain of HK$1.6 million from the transaction, according to a company statement.
“The board is of the view that the development of cinema operations in the PRC is not performing as expected and to continue cinema operations in the PRC is going to take up too much resources of the group,” HMV said in the statement.
Last month, the company’s shares plunged more than 20% after news emerged that it was shutting down all seven of its CD and DVD stores in Hong Kong. About 80 employees were dismissed, according to reports.
The company was also behind in rent and other payments, and is facing lawsuits by landlords and other creditors.
HMV’s shares were unchanged at HK$0.012 by 12:11 AM ET (05:11 GMT) on Monday.