JJB Sports turnaround man Peter Williams to advise on EMI rescue

Former Selfridges chief executive and JJB Sports director Peter Williams has been drafted in to help with the rescue of troubled music business EMI.

Williams, who has established a reputation as a business troubleshooter for his work at JJB Sports and Alpha Airports, has become a director of Maltby Capital, the acquisition vehicle of private equity firm Terra Firma that owns the famous music publisher and label.

Terra Firma bought EMI for £4.2bn in 2007 but last year the business, hit by recession and the decline of the CD market, posted a loss of £1.8bn. A cash injection of more than £120m is needed before May to avoid a breach of covenants which would lead to control of the business passing to Citigroup, with which Terra Firma is embroiled in a dispute dating back to the time of the deal.

EMI bosses believe the business can be salvaged if a new capital structure can be put in place. Williams, who has a strong financial background and was Selfridges' finance director before becoming chief executive, is expected to play a key role as an independent director able to deal both with the banks and equity owners.