HMV saved from administration by Canadian firm

HMV

Sunrise Records owner Doug Putman will buy 100 of HMV stores out of administration, securing 1,487 jobs, but 27 stores will close immediately, resulting in 455 redundancies.

The Canadian entrepreneur bought the Canadian retail chain Sunrise Records in 2014 and bought HMV’s Canadian business in 2017 expanding his chain into a national operation with 80 stores.

He saw off competition from Sports Direct’s Mike Ashley to save the collapsed music chain, but blamed high rents for the decision to close 27 stores.

Administrators KPMG have been running the business until a buyer was found, and have said they will inform staff this morning (Tuesday) if their store is to close before a public announcement.

The deal will save the music retailer from collapse for the second time in six years, after Hilco bought the business in 2013.

Hilco blamed an ‘extremely weak’ festive trading season for their decision to call in the administrators in December 2019.

Speaking on Radio 4’s Today programme Doug said the chain would be stocking more vinyl records in response to customer demand.

In a statement announcing the deal the chief executive of Sunrise Record said: ‘We are delighted to acquire the most iconic music and entertainment business in the UK and add nearly 1,500 employees to our growing team. By catering to music and entertainment lovers, we are incredibly excited about the opportunity to engage customers with a diverse range of physical format content, and replicate our success in Canada.

‘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.’

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