Hilco UK announced that it has acquired HMV Canada from HMV Group plc for GPB £2.05 million.
For more information visit: www.hilcouk.com
Unedited press release follows:
Hilco UK acquires HMV Canada
HMV Canada
General Statement
TORONTO, June 27, 2011 – Hilco UK, a British retail restructuring specialist, has announced today the acquisition of HMV Canada from the UK’s HMV Group plc, for a total of GPB £2.05 million. Hilco UK will also provide HMV Canada with working capital of up to CAD$25 million to fund the Canadian management team’s plans for the continued evolution of its business.
Commenting on the transaction, Nick Williams, President of HMV Canada stated, “We are pleased to confirm the sale of HMV Canada to Hilco UK, and plan to immediately begin the next chapter in the growth of our business in the Canadian marketplace. We look forward to sharing more information regarding the future plans of HMV Canada in the coming weeks.”
Paul McGowan, Hilco UK Chief Executive added, “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.”
HMV Canada operates 121 stores across Canada and is the only national specialty entertainment retailer in the country. It intends to expand its current digital platform for consumers, to incorporate streamed content.
In acquiring HMV Canada, Hilco UK secured the support of every major supplier in the sector in Canada for its plans to fund the business. 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.”
About Hilco UK
Hilco UK is a retail restructuring specialist, combining financial and operational expertise and provides finance for longer term corporate regeneration. For more information about Hilco UK, please visit http://www.hilcouk.com
About HMV Canada
HMV Canada’s first store opened in 1986, from which it has grown to become a Canadian entertainment market leader with 121 stores from Newfoundland to British Columbia, including flagship stores in Toronto, Edmonton, Montreal and Vancouver, as well as the hmv.ca website. HMV Canada is an innovator in its market, launching in 2009 hmvdigital.ca, a digital music store offering over 10 million MP3 tracks for download, and in 2010 the HMV Pure customer rewards program, which has attracted over 625,000 paid cardholders. HMV has been named Canadian Music Retailer of the Year for the past 20 years, and has also been recognized as the Canadian Entertainment Network DVD Retailer of the Year. For the year ended 24 April 2010, HMV Canada generated sales of $360M, an operating profit of $3.7M and operated with gross assets of $75.0M.