As a long time customer (and as someone who knows lots of people within the company), the closing of HMV makes me really, really sad. Here’s the company’s official statement about their financial situation.
HMV Canada Appoints Receivers
(Toronto, ON) – HMV Canada, the entertainment retail chain based in Etobicoke, Ontario, has today petitioned for the appointment of Richter LLP as Receivers to the business. As a result it is anticipated that all 102 stores across the country will close in the coming weeks. The main HMV business in the U.K. is not affected by today’s filing and continues to trade normally following another year of strong profitability in 2016.
Nick Williams, President & CEO, HMV Canada said “Despite a number of weeks of detailed negotiations with our key suppliers, we have been unable to obtain the assurances that we need in order to continue to operate the business. Therefore, we have had no choice but to take the difficult step of appointing Receivers. This is a hugely disappointing day for the HMV Canada business, our hard-working and dedicated employees, and all our loyal customers. This outcome will have a major detrimental effect on the future of the entertainment retail sector.”
The market for CDs & DVDs in Canada has experienced more significant declines in each of the last two years than has been seen in most other major markets. HMV Canada, however, with over 220 million in sales, had outperformed the market particularly in the sale of back catalogue titles, which were the clear strength of its retail offering. HMV Canada has also been central to the growth of Blu-Ray movies and Vinyl records in the market.
Williams concluded, “Since 2011, the business has enjoyed a mutually beneficial partnership with each of its major entertainment suppliers. In those six years, the business has defied the declines in the retail market, performing better than the rest of the entertainment sector in Canada and delivering a retail experience that is unique in the country. Such an amazing performance has only been possible thanks to the magnificent efforts of all of our employees and the continued support of the HMV Canada customers.”
Goddammit. This is bad. Here’s why.