HMV Canada is set to close all 102 of its stores in the country after the retailer went into receivership.
The Canadian branch of the music and entertainment retailer – which opened its first store in the country in 1986 – was sold by HMV to retail restructuring specialist Hilco in 2011, after which it operated as an independent company from HMV in the UK.
After over 30 years in business, however, HMV Canada was put into receivership on Friday (January 27) following the accumulation of huge losses in recent years. The decision from the Ontario Superior Court meant that the majority of its head office staff were made redundant, while all 102 of its stores will have to close in the coming weeks.
Court documents revealed that HMV Canada and its major suppliers “were unable to reach an agreement, on mutually acceptable terms, to sustain HMV’s operations and support a recovery.” The company owes its major suppliers – which include music labels and media studios – $56 million (£32.4 million) as of December 31.
HMV Canada’s sales had fallen dramatically in recent years, with sales expected to only reach $190 million (£116 million) for 2016 – that’s compared to $214.4 million (£131 million) in 2015 and $225 million (£137.5 million) in 2014.
Meanwhile, the record store Lucky Seven in London is set to close its doors – owner Jason Gore blamed rapid rent increases over the last few years for its closure.