Announced today, HMV Canada has been acquired by Hilco UK for £2.05 million. HMV Canada’s 121 stores and Canadian management team will continue operations.
"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,” said Nick Williams, President of HMV Canada in an official statement.
Hilco UK will provide HMV Canada with a working capital of up to $25 million CAD to continue the management team’s plans for continued evolutions in business.
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"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 Hilco UK Chief Executive Paul McGowan.
HMV Canada’s stores operate across Canada and are widely known as the only national specialty entertainment retailer in the country. The company plans to expand its retail operations in its current digital platform and incorporate streamed content for consumers.
Hilco UK feels the support it received from vendors in the entertainment industry over this acquisition proves that heading toward the digital frontier is the right choice. "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,” said McGowan.