HMV Canada has been sold to British retail restructuring specialist Hilco UK for £2.05 million as part of HMV Group’s plans to reduce debt and secure its main business in the UK.
Hilco UK will also provide HMV Canada with up to C$25 million in working capital to fund the Canadian management team's plans for the continued evolution of the business.
"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,” said Nick Williams, president of HMV Canada. “We look forward to sharing more information regarding the future plans of HMV Canada in the coming weeks."
Paul McGowan, chief executive of Hilco UK, 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.
HMV Group is in the process of restructuring itself, having recently sold the book chain Waterstone's to Russian billionaire Alexander Mamut for £53 million.
