HMV chain stored, but some stores will close

  A man crawls CDs inside the original boundary of the HMV chain of music retailers on December 28, 2018 in London Image copyright
Getty Images

Canadian firm Sunrise Records has emerged as the buyer of collapsed music chain HMV, beat competition including Sports Direct owner Mike Ashley.

The company will buy 1[ads1]00 stores out of administration, securing 1,487 jobs.

But 27 stores will close, resulting in 455 redundancies.

Sunrise Records CEO Doug Putman said he was "happy to acquire the most iconic music and entertainment industry in the UK."

No price was given.

The administrators KPMG announced that the company's flagship Oxford Street store in London is among the 27 stores to be closed.

HMV stores in Manchester (Trafford Center), Sheffield (Meadowhall)

Canadian entrepreneur Putman, 34, bought the retail chain Sunrise Records in 2014.

He has previously purchased HMV's Canadian business in 2017, and expanded his small chain for a national operation with 80 outlets.

Heritage brand & # 39;

Image caption

Not all HMV stores will be reopened

Mr Putman is also president of Everest Toys, the largest toy and gaming distribution company in North America.

He told BBC Radio 4's Today program that HMV was a "great heritage mark".

He also said

Who is Doug Putman?

First successful business partnership – selling fresh local produce – started for 16 years.

Bought Canada's Sunrise Records in 2014 – and expanded it.

Took over HMV's Canadian sites after it entered administration.

Mr Putman also owns a restaurant called The Granite in Bancroft, Ontario, and Makin Waves Marine, a boat dealer.

His family also runs Everest Toys, one of the largest toy wholesalers in North America.

Media playback not supported on your device

Media code agreement His deal will eventually save 1600 jobs, he tells today's program

"I feel very fortunate to be able to say that we [will] continue to call the HMV, "he told the program. There had been speculation that the stores could be rebranded as Sunrise Records stores after Putman's rebranding of HMV's Canadian business.

"It is very clear that the customer wants more choice on vinyl, more catalog type," he said. 19659005] "There is no doubt that online is a big part of the general retail market. But people like to come into a store, have an experience, talk to someone who understands music, loves music, loves video and entertainment. the future I do not think is the case. "

He added," There is so much you come from entering a store that you can't get online. "


Robert Plummer, Business Reporter

The news of a successful rescue bid for worried HMV could not be soon enough for both employees and customers, although some outlets will unfortunately not close. After the store chain got its second breakdown in December, it has faced weeks of weeks without new supplies reaching its branches.

It didn't play that much in January, traditionally a lean time for music publishing. But now February has begun, bands are putting out new albums again, and their absence from HMV's shelves began to look embarrassing.

On Monday, the HMV's flagship Oxford Street store was unable to provide copies of the latest CDs by Specials, Busted and Ian Brown, issued at the end of last week.

That means these albums are hard to find on the High Street right now, since HMV sells almost a third of the UK's physical music product.

Impulse buyers who fail to go out with these releases may well represent sales lost to the music industry forever – proving why record companies need HMV to survive.

According to Canadian broadcaster CBC last year, his goal is also to link local tastes in music and store autonomy is important, he said. [19659005] "I think you lose something when everything is exactly the same," Putman told CBC. "Essentially, each store has a different range. If metal is very large in this area, they can store more of it."

HMV collapsed in December, its second administration in six years.

So far, Ashley had been the likely favorite to take over the music dealer.

As the owner of more than 60% of Sports Direct, he has purchased dealers, including the House of Fraser department store chain and Evans Cycles.

His company also owns stakes in French connection and debenhams.

image copyright

picture caption

a woman at the first listening booths in HMV in the 1930s


The HMV owner Hilco, who took the company out of its first administration in 2013, has blamed a tsunami of the retail challenges for the last collapse.

These include the business level and increasing use of streaming services to deliver music and movies.

HMV sold 31% of all physical music in the UK in 2018 and 23% of all DVDs, with a market share growing month by month throughout the year.

The music industry expects sales of physical entertainment to shrink by another 17% this year.

Will Wright, partner of KPMG and joint administrator, said: "We are pleased to confirm this sale, which, following a complex process, continues to trade with the majority of the business.

" Our immediate concern is now supporting the employees who unfortunately, has become redundant. "

Source link

Back to top button