Purchase protects 141 stores – with reprieve for 25 that had been earmarked for closure
HMV has been rescued by the restructuring expert Hilco, saving 2,643 high street jobs and 141 stores.
Hilco, which already owns HMV Canada, said the deal for the CD and DVD retailer included 25 stores that had been slated for closure, although 80 sites will remain shuttered. All nine branches of its Fopp music chain will also be saved.
HMV, founded in 1921 and famous for its Nipper the dog trademark, collapsed into administration in January after struggling to compete against cut-price supermarket offers and internet downloads. When it collapsed HMV employed 4,123 staff in 223 stores.
It is understood the chain was sold for £50m, but Hilco and HMV’s administrators Deloitte declined to comment on the sale price.
Paul McGowan, the chief executive of Hilco, said: “We hope to replicate some of the success we have had in the Canadian market with the HMV Canada business which we acquired almost two years ago and which is now trading strongly. The structural differences in the markets and the higher level of competition in the UK will prove additional challenges for the UK business but we believe it has a successful future ahead of it.”
mum just told me that hmv have been saved I AM SO HAPPY GUYS
— katy (@paleandcoy) April 5, 2013
HMV UK will be run by a Hilco team working alongside existing management. It will be led by Ian Topping, formerly chief executive of the South African retail group Steinhoff. McGowan will become HMV’s chairman. HMV’s former chief executive Trevor Moore was made redundant in February.
Topping said it was an “exciting investment” and believes the nation’s outpouring of grief when HMV collapsed “shows a strong desire for the business to continue to trade and we hope to play a constructive part in delivering that”.
Topping plans to take HMV back to its traditional musical roots by reversing an earlier decision to sell tablets in store in order to “reclaim the space for an enhanced music and visual range”.
HMV IS SAVED OMG I’M SO HAPPY RIGHT NOW! Ahahahahaha
— Antimony (@element_51) April 5, 2013
Major music labels and film studios, keen that a major entertainment retailer remains on the high street, are understood to have agreed to new supply terms with HMV and approved the deal.
HMV called in administrators from Deloitte in January but hopes of a rescue deal were raised just days later when Hilco bought HMV’s £176m of debt for a reported £40m. It was announced in February that 66 of HMV’s 220 shops would close over two months, at the cost of nearly 1,000 jobs. Another 37 store closures were announced later that month.
Nick Edwards, one of HMV’s administrators at Deloitte, said the accountancy firm was “delighted” to have been able to save “one of the world’s most iconic retail brands”.
The British Retail Consortium said: “The prospect of a significant number of jobs and stores being saved here is clearly good for people who are relying on that business for work and it’s good for many high streets up and down the country where these shops will be occupied and trading.”
At its peak, HMV had more than 400 shops around the world, more than half of them in the UK. It had a 35% share of Britain’s CD market in 2012.
The company lost £16.2m in its latest financial year, to the end of April 2012, despite collecting sales of £923m.
Composer Edward Elgar opened HMV’s first store on London’s Oxford Street in 1921. It hit 100 stores in 1997, floated on the London Stock Exchange in 2002, and had 200 stores by 2004.
The company relaunched its website on Friday with the strapline “we are entertainment” and thanked customers for their support in a blog.
We’re officially out of administration and under new ownership. The whole team’s working hard behind the scenes to bring you the new and improved hmv. A new website and digital services, a rebooted Pure rewards scheme, and a fresh approach to our stores are all in the works.
We’ve got some truly exciting stuff in store for you but all of this is going to take us a little while to perfect. For now, this site will keep you up to date on what’s going on – the latest releases and what’s coming up – while we get everything ready to come back with a bit of a bang later in the year.
.@johnprescott And apparently they’re having a special Chumbawumba section dedicated to you …
— Peter Kirkham (@Peter_Kirkham) April 5, 2013
The stores which have been saved are:
Aberdeen, Ayr, Banbury, Bangor, Basildon, Basingstoke, Bath, Belfast Donegall Arcade, Birmingham Bullring, Blackpool, Bluewater, Bournemouth, Bradford, Brighton Churchill, Bristol Broadmead, Bristol Cribbs, Bromley, Bury, Bury St Edmunds, Cambridge, Canary Wharf, Canterbury, Cardiff, Carlisle, Chelmsford, Cheltenham, Chester, Chichester, Colchester, Coventry, Crawley, Cwmbran, Darlington, Derby, Doncaster, Dundee, East Kilbride, Eastbourne, Edinburgh Fort Retail, Edinburgh Ocean Terminal, Edinburgh Princes Street, Exeter, Bristol (Fopp), Cambridge (Fopp), Covent Garden (Fopp), Edinburgh (Fopp), Glasgow Byres Road (Fopp), Glasgow Union Street (Fopp), Gower Street London (Fopp), Manchester (Fopp), Nottingham (Fopp), Gateshead, Glasgow Argyle, Glasgow Buchanan, Glasgow Fort, Gloucester, Grimsby, Guernsey, Guildford, Hanley, Harlow, Harrogate, Hastings, Hatfield, Hereford, High Wycombe, Horsham, Hull, Inverness, Ipswich, Isle of Man, Isle of Wight, Islington, Jersey, Kettering, Kings Lynn, Kingston, Leamington Spa, Leeds Headrow, Leeds White Rose, Leicester, Lincoln, Liverpool One, Livingston, Llandudno, Maidstone, Manchester 90 Market Street, Manchester Trafford, Mansfield, Merry Hill, Middlesbrough, Milton Keynes, Newcastle, Newport (Wales), Northampton, Norwich Gentlemans Walk, Norwich Chapelfield, Nottingham Victoria, Nuneaton, Oxford, Oxford Circus, Peterborough Queensgate, Plymouth Drake Circus, Poole, Portsmouth Commercial Road, Portsmouth Gun Wharf Quay, Preston, Reading Oracle, Romford, Selfridges Oxford Street, Sheffield High Street, Sheffield Meadowhall, Shrewsbury, Solihull, Southampton, Southend Victoria, Southport, Speke Park, Staines, Stevenage, Stirling, Stockport, Stratford upon Avon, Stratford City Westfield, Sunderland, Sutton, Swansea, Taunton, Thanet, Thurrock, Truro, Tunbridge Wells, Uxbridge, Westfield London, Wimbledon, Winchester, Wolverhampton, Worcester, Worthing, Yeovil, York.
The stores to close are:
HMV stores in N Ireland that will close: Ballymena, Belfast x2, Coleraine, Craigavon, Derry, Newry, Newtonabbey. Staying open: 1 in Belfast
— Marcus Leroux (@marcusleroux) April 5, 2013
Ashford Ashton Under Lyne Ballymena Barnsley Bayswater Whiteleys Belfast Forestside Bexleyheath Birkenhead Birmingham The Fort Blackburn Bolton Boston Bournemouth Castlepoint Bracknell Burton Upon Trent Chesterfield Coleraine Craigavon Croydon Centrale Derry Dumfries Durham Edinburgh Gyle Centre Edinburgh St James Enfield Falkirk Folkestone Fulham Glasgow Braehead Hemel Hempstead Huddersfield Kirkcaldy Lancaster Leadenhall Lisburn Loughborough Luton Moorgate Newbury Newcastle Silverlink Newry Newtownabbey Orpington Redditch Rochdale Salisbury Scarborough Scunthorpe South Shields St Albans St Helens Stafford Stockton On Tees Swindon Tamworth Teesside Telford Resite Torquay Trocadero Wakefield Walsall Walton On Thames Wandsworth Warrington Watford Wellingborough Wigan Woking Wood Green Workington Wrexham Heathrow T5 Departure Level Heathrow Terminal 1 Heathrow Terminal 3 Heathrow Terminal 4 Glasgow Silverburn Belfast Boucher Camberley There were also three stores scheduled to close prior our appointment as Administrators, but closed after our appointment. Windsor Perth Chatham