After news of its offer surfaced yesterday (February 4), Sunrise Records' bid to bail out HMV in the U.K. has been successful.
Sunrise — owned by Hamilton, ON's Doug Putman — beat out an offer from Sports Direct founder Mike Ashley.
The Canadian retail chain purchased 100 HMV locations across the U.K. with the intent of reviving business. Going forward, the stores will not go through a name change and continue to be called HMV.
As The Guardian reports, the move saves 1,500 jobs. Unfortunately, the deal also means that 27 stores — including the flagship Oxford Street shop in London — will close, cutting 455 retail jobs and a further 122 warehouse positions.
High rent is cited as the reason for shutting down the aforementioned 27 locations.
"We are delighted to acquire the most iconic music and entertainment business in the U.K. and add nearly 1,500 employees to our growing team," Putman said in a statement. "By catering to music and entertainment lovers, we are incredibly excited about the opportunity to engage customers with a diverse range of physical format content, and replicate our success in Canada. We know the physical media business is here to stay and we greatly appreciate all the support from the suppliers, landlords, employees and most importantly our customers."
HMV announced that its U.K. faction was going into administration again back in late December.
The company blamed "a dramatic change in consumer behaviour in the entertainment market" — partially a result of digital streaming — as the reason for entering administration for the second time in six years.
All of HMV's Canadian locations closed in 2017. Later that year, Sunrise Records announced that it would be opening 70 new stores in former HMV locations across Canada.
Sunrise — owned by Hamilton, ON's Doug Putman — beat out an offer from Sports Direct founder Mike Ashley.
The Canadian retail chain purchased 100 HMV locations across the U.K. with the intent of reviving business. Going forward, the stores will not go through a name change and continue to be called HMV.
As The Guardian reports, the move saves 1,500 jobs. Unfortunately, the deal also means that 27 stores — including the flagship Oxford Street shop in London — will close, cutting 455 retail jobs and a further 122 warehouse positions.
High rent is cited as the reason for shutting down the aforementioned 27 locations.
"We are delighted to acquire the most iconic music and entertainment business in the U.K. and add nearly 1,500 employees to our growing team," Putman said in a statement. "By catering to music and entertainment lovers, we are incredibly excited about the opportunity to engage customers with a diverse range of physical format content, and replicate our success in Canada. We know the physical media business is here to stay and we greatly appreciate all the support from the suppliers, landlords, employees and most importantly our customers."
HMV announced that its U.K. faction was going into administration again back in late December.
The company blamed "a dramatic change in consumer behaviour in the entertainment market" — partially a result of digital streaming — as the reason for entering administration for the second time in six years.
All of HMV's Canadian locations closed in 2017. Later that year, Sunrise Records announced that it would be opening 70 new stores in former HMV locations across Canada.
