British entertainment legend HMV is considering the sale of its Canadian retail operation to avoid breaking the terms of its debt arrangement.
With debts in the region of $200 million, the sale of assets seems the most likely short term option. HMV is already said to be looking for a buyer for its UK book retailer Waterstones, with Russian billionaire Alexander Mamut an interested party, possibly in partnership with the bookseller’s original founder Tim Waterstone.
An HMV Group announcement last Friday said it was “exploring strategic options” with regard to both Waterstones and HMV Canada, but added that there was currently “no certainty that any transaction would be concluded”, and that a sale of the whole HMV Group was not on the agenda.
HMV was once the market leader for music sales in Canada, but has suffered as the industry moved online and CD sales fell. The UK stores are said to be performing well under a strategy of diversification into a broader base of technology related products,fashion and merchandise, and the launch of its own online music downloading service.
HMV's Canadian division said in a statement today that it is currently reviewing its options and moving forward with growth plans and a new business model.
The company said it is finalizing plans to open new concept locations across the country, but did not give any details.
