In this file photo dated Dec. 28, 2018, people pass a CD music and entertainment retailer HMV shop in London. (AP Photo/Frank Augstein, FILE)

Canada’s Sunrise Records to buy failing HMV

Most jobs will be saved, though 27 stores will close immediately

Canadian retailer Sunrise Records is pulling stricken retailer HMV out of bankruptcy in a deal that will safeguard some 1,500 jobs.

However, administrator KPMG says 27 stores will close immediately, resulting in a loss of 455 jobs.

Sunrise Records will acquire 100 stores across the United Kingdom, and 1,487 stores and head office employees will transfer as part of the transaction.

The stores will continue to operate as HMV, with four stores continuing under the Fopp banner.

RELATED: Sunrise Records to move into 70 closing HMV locations

“We are delighted to acquire the most iconic music and entertainment business in the UK,” Sunrise Records chief executive Doug Putman said in a statement.

“We know the physical media business is here to stay and we greatly appreciate all the support from the suppliers, landlords, employees and most importantly, our customers.”

The move comes amid extreme pressure on physical retailers as customers buy more online. Poundworld, Toys’R’Us and Maplin went under last year, and major retailers like Debenhams are closing stores.

Management professor Christian Stadler of Warwick Business School says that while it is “excellent” news for those who prefer to buy their music from a shop, rather than streaming or online, it would be foolish to think there is “scope for considerable growth. HMV’s new owners need to focus on carving out some sort of niche to ensure a future for the company.”

— With files from The Associated Press

The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

It happened this week in 1912

Dec. 8 - 14: Compiled by Dave Humphrey from the newspapers at the Cranbrook History Centre and Archives

Resident calls for ban after dog caught in leg hold trap

Bill Post of Cranbrook is pondering an horrific experience that happened to… Continue reading

Kootenay-Columbia MP talks throne speech, USMCA trade deal

Rob Morrison to open constituency office in Cranbrook at 800C Baker St. on Dec. 19

Kootenay-Columbia MP reacts to leader’s surprise resignation

The resignation of Conservative Party leader Andrew Scheer caught members of his caucus by surprise

Wild Theatre presents “A Christmas Carol”

Wild Theatre and Mount Baker Music join forces this week to present… Continue reading

Fashion Fridays: A masterclass on H&M knitwear

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

‘Tis the Season for Hugs & Slugs

Hugs: To Rotary, Colombo Lodge, Rick’s Fine Meats, Lee Pratt & Council,… Continue reading

King Friday the Thirteenth

Rev. Yme Woensdregt I went to an absolutely wondrous and luminous movie… Continue reading

B.C. Crown corporation immune from taxation, but may still have to pay GST: court

British Columbia Investment Management Corporation may still be on hook for GPS payments

‘He was good for the West:’ Sadness, surprise in Saskatchewan over Scheer

Saskatchewan Premier Scott Moe and his predecessor, Brad Wall, both thanked Andrew Scheer

Travellers know little about air-passenger rights, Canadian poll suggests

The first set of passenger-rights rules landed in mid-July and the rest this weekend

Johnson claims Brexit mandate with new conservative majority

Conservative Party wins 365 seats in the House of Commons

‘British Columbians are paying too much’: Eby directs ICBC to delay rate application

Attorney General David Eby calls for delay in order to see how two reforms play out

Most Read