HMV are set to enter the digital sales market for the first time since their financial collapse two years ago.
The high street music and entertainment chain went into administration in January 2013 after it built up £170 million in debt, with 223 shops and more than 4,000 jobs put at risk. However, 144 of the shops were bought by restructuring company Hilco three months later.
Following Hilco’s acquisition, HMV later reported profits of nearly £17 million during 2013. Earlier this year, it was announced that the company has overtaken Amazon to become Britain’s most successful retailer of physical music.
HMV are now expected to relaunch their online store within weeks, according to The Telegraph. The company removed its original web store when they entered administration in 2013. HMV’s website has largely been used as a music blog of sorts since.
“People are switching from downloads to streaming music, so digital is eating digital but physical music sales are recovering,” said HMV’s chief executive Paul McGowan. “We are careful that we don’t want to overcook it but there is a large potential for the UK website to lift the business.”
HMV recently unveiled plans to open six more stores in the UK and 10 in Ireland. Speaking previously about HMV’s revival, McGowan said, “HMV has captured more and more market share in a year when major new movie releases have been scarce and there have been only a few major album successes.”