UK head leaves EMI

As Terra Firma’s plans for music group EMI develop a third senior executive departs the business. Guy Hands has pledged to cut costs and develop new revenue streams for the beleaguered music company.

Tony Wadsworth has stepped down as chairman and chief executive of EMI in the UK and Ireland, as the latest high profile departure from the music group since UK buyout firm Terra Firma acquired the company for £2.4 billion ($4.7 billion; €3.2 billion), according to a statement.

Tony Wadsworth:
Leaving EMI

Roger Ames, the head of EMI’s US operations, has taken over A&R or scouting and talent development in the UK and Ireland. Mike Clasper, who was brought on to EMI’s board in November by Terra Firma, will assume Wadsworth’s other responsibilities.

Wadsworth’s departure follows the resignation of the company’s chief executive Eric Nicoli and its chief financial officer Martin Stewart in August after Terra Firma received shareholder acceptance for its offer in the same month.

Guy Hands has pledged to cut costs at the company and develop revenue streams at the company.

The deal was fully financed by US bank Citi. According to sources in the debt markets the deal is regarded as a problematic syndication in the liquidity starved leveraged loan markets due to the declining fortunes of the recorded music industry.

The UK buyout firm closed its third fund on €5.4 billion ($7.9 billion) and Terra Firma’s entire equity stake in EMI has been provided from this fund, according to market sources.

Terra Firma could not immediately be reached for comment.