EMI chief executive to leave

The news comes as Terra Firma CEO Guy Hands is striving to convince investors to pump a reported £120m (€132.1m) of additional investment into EMI to prevent covenant defaults. If investors refuse to inject more money into the company, it could end up back in the hands of Citigroup, which sold EMI to Terra Firma in 2007 and is currently being sued by the firm over allegations that it misrepresented the label’s prospects and the level of interest form rival private equity firms.

Leoni-Sceti joined the company from consumer brand company Reckitt Benckiser, where he led several business turnarounds in his 16-year tenure.

He said, “My job here is now done and it is time for me to move on.”

The news caps off a challenging week for the record label, after it was sued by iconic UK music group Pink Floyd. The band, which has been signed to EMI for over 40 years, objected to its songs being sold individually online, instead of in album form, which Pink Floyd claimed was a violation of its contract. The claim was reportedly upheld in a London court today, banning EMI from splitting up Floyd tracks, and forcing it to pay costs of $60,000. Damages, if any, are yet to be awarded.

Pink Floyd are rumoured to be weighing up the possibility of jumping ship from EMI, along with another legendary UK act, Queen, over concerns about EMI’s finances.

Allen said that the company would prioritise digital sales. “I will support and guide the group’s strong team, keep EMI’s focus on creativity and superb A&R, and deliver a digital platform. This is a great business – our task is to ensure it has a great future,” he said.

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