Tuesday, May 26th14.1°C
26260
26336

HMV in spin to save company

British music and entertainment retailer HMV admitted defeat on Tuesday after more than 90 years in business, suspending trading in its shares and calling in administrators to try to salvage any viable parts of the business.

HMV is the last big retail chain selling recorded music in Britain and employs more than 4,000 people working in 238 stores, which will remain open for the time being.

The announcement follows a strong Christmas-New Year sales season for HMV-branded stores in Canada, which are under separate ownership.

The Canadian stores reported last week that their $65.4 million of sales over the holiday period brought the 12-month total to more than $270 million.

The British company's management confirmed Tuesday that it had failed to gain agreements with lenders and suppliers to continue trading. It has appointed three partners of Deloitte LLP to administer the business.

The name HMV stands for "his master's voice," from the company's trademark of a dog named Nipper staring intently at the bell of an early gramophone player. The first HMV music store was opened in London in 1921.

The company opened a store in Canada in the late 1980s, and later moved into the United States, Japan, Australia, Hong Kong and Singapore.

The Canadian operation downsized to 113 stores but appeared to be adjusting to changed market conditions more rapidly than other parts of the international group. The Canadian HMV stores were sold last summer.

"HMV's notice of administration was inevitable with online retailers, downloads and supermarkets combining to marginalize a brand which has become out-priced and outdated, despite its strong heritage," said Julie Palmer, partner at recovery and restructuring specialist Begbies Traynor.

HMV suffers from the high costs of running too many shops in high-rent city centres, while competitors selling online have lower overheads.

The Canadian Press


Read more Business News

26416


Recent Trending




Today's Market
S&P TSX15039.96-147.44
S&P CDNX695.28-4.77
DJIA18041.37-190.65
Nasdaq5027.04-62.33
S&P 5002106.44-19.62
CDN Dollar0.8049-0.0072
Gold1188.50-15.80
Oil59.50-1.17
Lumber278.10+4.30
Natural Gas2.808-0.079

 
Okanagan Companies
Pacific Safety0.14+0.01
Knighthawk0.010.00
QHR Technologies Inc1.49+0.00
Cantex0.03-0.01
Anavex Life Sciences0.445+0.020
Metalex Ventures0.085+0.005
Russel Metals25.43-0.40
Copper Mountain Mining1.30-0.03
Colorado Resources0.105+0.005
ReliaBrand Inc0.008+0.003
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.175+0.005
Decisive Dividend Corporation2.20+0.60

 



26361

FEATURED Property
22284772798 KLO Road
4 bedrooms 7 baths
$2,895,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Cash stressed seniors

Photo: Thinkstock.comFor many Canadian homeowners, their house represents the biggest portion of their net worth. Now, increasing numbers of seniors are starting to recognize the hidden value of their...


Do or do not

Photo: Thinkstock.com“The optimist sees the rose and not its thorns; the pessimist stares at the thorns, oblivious of the rose.” - Kahlil Gibran Good planning is all about managing chan...


Penetrate the smokescreen

Photo: ContributedHas this ever happened to you? You’re in the middle of your second or third “good discussion” with a prospect. Everything’s going great. The prospect seems en...

_



25217

25991


Member of BC Press Council


26316