In this file photo dated Dec. 28, 2018, people pass a CD music and entertainment retailer HMV shop in London. (AP Photo/Frank Augstein, FILE)

Canada’s Sunrise Records to buy failing HMV

Most jobs will be saved, though 27 stores will close immediately

Canadian retailer Sunrise Records is pulling stricken retailer HMV out of bankruptcy in a deal that will safeguard some 1,500 jobs.

However, administrator KPMG says 27 stores will close immediately, resulting in a loss of 455 jobs.

Sunrise Records will acquire 100 stores across the United Kingdom, and 1,487 stores and head office employees will transfer as part of the transaction.

The stores will continue to operate as HMV, with four stores continuing under the Fopp banner.

RELATED: Sunrise Records to move into 70 closing HMV locations

“We are delighted to acquire the most iconic music and entertainment business in the UK,” Sunrise Records chief executive Doug Putman said in a statement.

“We know the physical media business is here to stay and we greatly appreciate all the support from the suppliers, landlords, employees and most importantly, our customers.”

The move comes amid extreme pressure on physical retailers as customers buy more online. Poundworld, Toys’R’Us and Maplin went under last year, and major retailers like Debenhams are closing stores.

Management professor Christian Stadler of Warwick Business School says that while it is “excellent” news for those who prefer to buy their music from a shop, rather than streaming or online, it would be foolish to think there is “scope for considerable growth. HMV’s new owners need to focus on carving out some sort of niche to ensure a future for the company.”

— With files from The Associated Press

The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

WATCH: Heiltsuk Nation open first Big House in 120 years in northern B.C.

Opening means the community now has an appropriate space for spiritual and ceremonial events

Prince Rupert’s students are baking it all the way to the bank

Charles Hays band students serve up goodies to fund summer trip

Two temporary voyages between Prince Rupert and Ketchikan added to AMHS schedule

October and November will see service to Alaska during the last week of each month

Police still looking for more info on missing mushroom picker in Nass Valley

65-year-old Greg Agnew was reported missing on Sept. 30

Conrad is giving thanks

Conrad students celebrate the holiday with a special meal

VIDEO: B.C. man’s yard comes alive with grizzlies at night

Malakwa man has captured images of 12 different grizzlies on video

Terrace artist turns historic downtown tree into work of art

Terrace artist carves a logger into wooden stump

First case of ‘probable’ vaping-related illness found in B.C.

Health officials warn this could be the first of many

Fire response at Trans Mountain Burnaby tank farm could take six hours: audit

Site doesn’t have mutual aid response agreement with Burnaby fire department

A year after pot legalization in Canada, it’s a slow roll

It’s one year into Canada’s experiment in legal marijuana, and hundreds of legal pot shops have opened

ELECTION 2019: Climate strikes push environment to top of mind for federal leaders

Black Press Media presents a three-part series on three big election issues

ICBC willing to loosen grip on driver claim data, David Eby says

Private insurers say claims record monopoly keeps them out

B.C. principal suspended for failing to help student who reported inappropriate touching

Principal didn’t remove student from the teacher’s class nor call the parents within a reasonable time

Port Moody mayor goes back on unpaid leave during sex assault investigation

Rob Vagramov said he intends to return as mayor in three or four weeks

Most Read