Canadian record stores can’t catch a break.
HMV Canada’s 121 stores have been sold by HMV Group, it’s U.K.-based parent company, to restructuring firm Hilco U.K. for an estimated £2 million (about $3.2 million Canadian).
The deal, which was announced Monday, will give HMV Canada $25 million in working capital. It was reported in February that HMV Canada was considering closing some of its stores. HMV Group will retain some of HMV Canada’s debt, according to BBC News.
Hilco plans to help HMV Canada transition from physical sales of CDs and music to digital files, the National Post reports.
“The new product categories it is introducing to the business will help sustain sales levels during the transition of entertainment sales into the digital realm,” Paul McGowan, Hilco’s chief executive, said in a statement.
Although HMV International reported sales of £253 million over the past financial sale, the Telegraph reports those profits are down 42 per cent.
HMV Group itself is also in the midst of restructuring, since it sold Waterstone, its book chain, back in May.
HMV opened its first store in Canada in 1986.
It’s been a rough seven days for Canadian record stores. Last week, it was revealed Toronto record store Sonic Boom would be moving from its two-floor Bloor Street West location into Honest Ed’s across the street, and opening another smaller store in Toronto’s Kensington Market neighbourhood. Then just a few days later, Toronto’s Criminal Records announced it was closing shop.
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