HMV Sells All Canadian Locations
Published Jun 27, 2011It's no secret that record retailer HMV has been struggling in recent years, shutting stores in the UK and Japan. Well, evidently the company isn't faring well in our country either, since all 121 HMV locations in Canada have been sold.
The new owner is Valco Capital Partners, the private equity arm of Hilco. This news comes from the Sunday Telegraph, which reports that the deal is worth £2 million ($3.15 million Canadian).
In a statement, HMV boss Simon Fox said, "The board has fully explored the options available to it for HMV Canada, and believes that a sale to Hilco is the correct decision for the business at this time, whilst reducing the operating leverage in the continuing group."
Despite the fact that it represents over a hundred stores, this is a relatively small transaction for the music giant. When HMV UK sold its Waterstone's outlets earlier this year, it did so to raise about $84 million to meet its bank loans.
Fox said that the company is shifting its focus away from music selling, explaining, "The group is focusing on clear and tightly defined plans for transforming HMV into a broad-based entertainment business."
However, this is hardly the end of HMV in Canada. As the CBC reports, Hilco will offer up $25 million in funding to help restructure the newly acquired chain, with a focus on developing a stronger digital presence.
It's been a bad few days for Canadian record stores. Last week, Toronto's Sonic Boom revealed that it was being forced to relocate and then that city's Criminal Records announced its impending closure.