Will it be third time lucky for HMV as the administrators KMPG announce that Sunrise Records, a Canadian firm that bought Canadian HMV stores, will buy the collapsed retail chain out of administration. The deal will result in 27 stores closing resulting in 455 redundancies but save 100 stores securing 1,487 jobs. HMV’s flagship Oxford Street store in London, opened in 1921, is among the 27 outlets set to close.
Sunrise Records chief executive Doug Putman said he was “delighted to acquire the most iconic music and entertainment business in the UK.” Putman bought HMV’s Canadian business in 2017 expanding his small chain into a national operation with 80 outlets. A self-confessed vinyl enthusiast, Putman said, “It is very clear that the customer wants more selection on vinyl, more depth of catalogue,”
“There’s no doubt that online is a big part of overall retail sales. But people like to come into a store, have an experience, talk with someone who understands music, loves music, loves video and entertainment. If you think online is the only future I don’t think that is the case.”
The Entertainment Retailers Association (ERA) welcoming the sale stated that, ‘With significant experience in the music, games and video market and a successful track record of growth in Canada, ERA is confident that HMV staff, suppliers and customers are in great hands with Sunrise.
Sunrise recognise that on top of streaming and downloading people continue to buy physical formats, which is still a significant £1.8 bn business. HMV accounts for approximately a quarter of the physical music market and a third of the video market creating a significant opportunity for Sunrise in the UK.’
Geoff Taylor, Chief Executive BPI and BRIT Awards, said, “We are heartened that the large majority of HMV stores will continue to trade under the new ownership of Sunrise Records – a business with a successful track record in entertainment retail in Canada.”
He continued, “There is still a resilient market for recorded music on physical formats – last year accounting for over a third of all music consumption. Fans value the collectability, artwork, liner notes and great sound quality of music on CD and vinyl. With new investment and the support of labels, HMV can continue to offer music lovers the pleasure of browsing and buying physical music on the High Street. We hope that Government will play its part in helping to sustain important employers like HMV by reviewing the high levels of business rates that disadvantage physical stores compared to online traders. Meanwhile, we wish the new owners and the staff the very best as the chain heads towards its centennial celebration in 2021.”
HMV stores planned to close
Ayr
Bath
Bluewater, Kent
Bristol, Cribbs Causeway
Chichester
Exeter, Princesshay
Fopp, Bristol
Fopp, Glasgow Byres
Fopp, Manchester
Fopp, Oxford
Glasgow, Braehead
Guernsey
Hereford
Trafford, Manchester
Merry Hill, Dudley
Oxford Street, central London
Queensgate, Peterborough
Plymouth, Drake Circus
Reading
Meadowhall, Sheffield
Southport
Thurrock
Tunbridge Wells
Uxbridge
Watford
Westfield Shepherds Bush
Wimbledon
