UK high street linchpin HMV ‘rescued’ by Canadian retailer

UK high street linchpin HMV ‘rescued’ by Canadian retailer

A deal has been struck to rescue 100 HMV stores out of administration, safeguarding almost 1,500 jobs, but 27 shops are to shut with 455 redundancies.

Canadian entrepreneur Doug Puttnam, the owner of Sunrise Records, has agreed the rescue with the joint administrators of HMV.

Sunrise Records & Entertainment Ltd will acquire 100 stores across the UK, and 1,487 store and head office employees will transfer as part of the transaction. The stores will continue to trade as HMV, with four stores continuing to trade as Fopp.

The administrators will retain a further 122 employees at warehouse functions to assist them in winding down operations. Unfortunately, 27 stores have not been acquired, and will be closed with immediate effect, resulting in 455 redundancies.

Will Wright, Neil Gostelow and David Pike from KPMG’s restructuring practice were appointed joint administrators on 28 December 2018.

“We are pleased to confirm this sale which, after a complex process, secures the continued trading of the majority of the business,” said Will Wright..

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

Neil Gostelow added: “We are grateful for the support of all key stakeholders including the suppliers whose support throughout this process has been key in securing this sale.”

Speaking to the BBC Radio 4’s Today show, Puttnam said the HMV brand would continue and also said the chain would look to stock more vinyl records to meet demand.

Details of the stores earmarked for closure have not yet been revealed.

Source: Insider Media Limited

Share This Post

Post Comment