British music retailer HMV, which collapsed after Christmas, has just been sold to Canada’s Sunrise Records owners, saving 100 stores and 1,487 jobs.
Sunrise Records CEO Doug Putman told the Financial Post that he was pleased to take over “the most iconic music and entertainment business in the UK,” and hopes to copy his company’s success in Canada. Allegedly, the companies’ joint administrators revealed that 27 stores were excluded from the deal and will be closing immediately, which will cause 455 layoffs.
HMV's Oxford Street store will close after the company was saved by Canadian firm Sunrise Records https://t.co/1QVzRGwYfJ
— BBC News (UK) (@BBCNews) February 5, 2019
HMV has struggled under the weight of online competitors and music streaming services. The company had been saved from another previous collapse in 2013 by Hilco, but it collapsed again in December after there was allegedly a 30 per cent drop in the DVD market.
“We know the physical media business is here to stay,” Putman explained. “We greatly appreciate all the support from the suppliers, landlords, employees and most importantly our customers.”