First Blockbuster went broke and closed, and now this.
Struggling British entertainment retailer HMV has sold its 121-store Canadian unit to Hilco UK, raising 2 million pounds ($3.2 million) to cut debt and help the firm stay in business.
The move by the 90-year-old firm to sell the Canadian business comes days after HMV’s shareholders backed the 53-million-pounds disposal of its Waterstone’s book chain to Russian billionaire Alexander Mamut.
Earlier this month HMV, which has issued four profit warnings this year, secured its immediate future with a 220 million pounds refinancing deal that will effectively involve the British taxpayer taking a stake in the group.
“The board has fully explored the options available to it for HMV Canada, and believes that a sale to Hilco is the correct decision for the business at this time, whilst reducing the operating leverage in the continuing group,” said Chief Executive Simon Fox.
“The group is focusing on clear and tightly defined plans for transforming HMV into a broad-based entertainment business.”
(Article from Reuters)
I’m hoping this doesn’t mean that HMV is closing too. Although I do watch the occasional movie and tv show online, I still prefer having a hard copy and I usually buy them from HMV. Although things are looking up with the line about “transforming HMV into a broad-based entertainment business”. I’m guessing that means adding new products and services.