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HMV saved from brink of collapse with deal to rescue 100 stores

HMV saved from brink of collapse with deal to rescue 100 stores

Guess who’s back, back again? BRITAIN’S LAST REMAINING chain music retailer, HMV has been saved from administration by Canadian retailer Sunrise Records in a move that saves 100 stores and 1,487 jobs. HMV in December announced that it had entered administration for the second time, seemingly unable to withstand the change in the way we consume

HMV saved from brink of collapse with deal to rescue 100 stores

Guess who’s back, back again?

BRITAIN’S LAST REMAINING chain music retailer, HMV has been saved from administration by Canadian retailer Sunrise Records in a move that saves 100 stores and 1,487 jobs.

HMV in December announced that it had entered administration for the second time, seemingly unable to withstand the change in the way we consume media in the internet age. 

However, it was this week saved from the brink of collapse by Sunrise Records, the BBC reports, which is owned by Canadian entrepreneur Doug Putman who previously took over HMV’s Canadian stores and rebranded them under the Sunrise Records label.

Here in Blighty, HMV stores will remain under the HMV banner, Putman told Radio 4’s Today Programme on Tuesday.

While 100 stores will be saved from becoming a fast food outlet or estate agents, the rescue deal will see 27 unprofitable stores – including four under its Fopp brand – close immediately, resulting in 455 job losses. This includes HMV’s iconic Oxford Street store, along with outlets in Glasgow, Manchester and Sheffield.  

The closure of these flagship stores suggests HMV could make a comeback as a smaller, leaner operation, perhaps with more of the values of its lovably nerdy, albeit now-defunct sister brand Fopp.

Putman, said: “We are delighted to acquire the most iconic music and entertainment business in the UK and add nearly 1,500 employees to our growing team.

“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.”

Will Wright, a partner at KPMG and joint administrator, added: “We are pleased to confirm this sale which, after a complex process, secures the continued trading of the majority of the business.

“Our immediate concern is now to support those employees that have unfortunately been made redundant.” µ

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