Hilco UK, a British firm which specializes in restructuring ailing retailers, has purchased HMV Canada from the UK's HMV Group plc. for 2.05 million British pounds, approximately $3.2 million Canada. The announcement comes almost three months after the firm was first reported to be up for sale.
HMV Canada, which opened its first store in 1986, operates 121 stores across Canada and is the only national specialty entertainment retailer in the country.
Hilco says it secured the support of every major supplier in the sector in Canada for its plans to fund the business which includes a $25 million Canadian injection into HMV.
"The management team of HMV Canada has built a plan that will extend the period over which the residual hard-copy music and film market can be maintained. 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." said Paul McGowan, Hilco UK`s Chief Executive.
In acquiring HMV Canada, Hilco UK McGowan explained, "Our financial and merchandise planning teams will be assisting existing management to optimize the business. The support of the entire industry shows how important it is to extend the residual market, despite the switch to digital."
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