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

Alberta Service Minister discusses registries, rural broadband in Lacombe

Minister Nate Glubish continues cross-Alberta tour

Lacombe Market vendor supporting family who lost their home

Lyndall Cave will be selling jewellery until the end of August

Lacombe Composite’s Ecovision Club, Friends of the Greenhouse preparing for successful harvest

LCHS students and community members keep programs growing throughout summer

Red Deer- Lacombe MP disapointed by Liberals blocking hearings on SNC-Lavalin affair ethics report

MP Calkins said Canadians will pass a verdict over the affair during the upcoming election

WATCH: Lacombe Days parade rolls through city

Hundreds turn out for annual tradition

Red Deer Rebels Coach Brent Sutter balancing plenty of youth with returning vets

Rebels will host annual Red and Black game Saturday at 11 a.m.

PHOTOS: Brazil military begins operations to fight Amazon fires

Amazon fires have become a global issue, escalating tensions between Brazil and European countries

Groups ready campaign to help young voters identify ‘fake news’ in election

The media literacy campaign to focus on identifying misinformation and suspicious sources online

Ethnic media aim to help maintain boost in voting by new Canadians

Statistics Canada says new Canadians made up about one-fifth of the voting population in 2016

Body of 19-year-old drowning victim recovered from Sylvan Lake

RCMP say the body was recovered the evening of Aug. 22.

Black bear ruins Alberta barber’s day

It’s not always a good idea to leave the door open

Conan turns to the Property Brothers for tips on buying Greenland

Jonathan Scott suggests removing glaciers and mountains to bring in ‘more natural light’

Most Read