The Canadian branch of home entertainment chain HMV Canada has been placed under receivership: its stores will most likely close by 30 April as it lacks the financial means to continue.
Huge debt
A Canadian judge has placed the struggling company under receivership after HUK 10 had filed for such an arrangement. The company had lent HMV Canada money, but was not repaid since November, despite a 39 million dollar loan. According to court filings, HMV Canada was losing 100,000 Canadian dollars (70,000 euro) per day because of increased online competition. In total, the company would require between two and five million dollars (1.5 – 3.5 million euro) to stay afloat for another year.
The court has now ordered Gordon Brothers Canada ULC and Merchant Retail Solutions ULC to take control of the matter and sell all of the company’s remaining merchandise. 102 stores will be closed and 1,340 people will lose their job. HMV Canada is a former subsidiary of HMV Retail, a UK-based chain that went bankrupt in 2013 but survived thanks to its new owner, Hilco UK.
