HMV rescued from administration by Canada’s Sunrise Records

(qlmbusinessnews.com via news.sky.com– Tue, 5th Feb 2019) London, Uk – –

Enterpreneur Doug Putman has pipped retail tycoon Mike Ashley to the purchase of the collapsed music retailer.

HMV has been bought out of administration by Canada's Sunrise Records in a deal which will save 100 stores but result in 27 closing.

The rescue will see 1,487 employees transferred to the new ownership but 455 made redundant, with 122 workers kept on in warehouse functions to assist in winding down operations.

HMV collapsed into administration in December for the second time in six years, after weak Christmas trading and a collapse in demand for CDs and DVDs amid the rise in streaming.

It became a takeover target for Sports Direct boss Mike Ashley – who Sky News revealed had demanded a six-month rent holiday from landlords if he were to buy the chain, to add to a slew of acquisitions over the last year including House of Fraser and Evans Cycles.

Instead, HMV has now come under the control of 34-year-old Sunrise owner and chief executive Doug Putman, who has bought the business for an undisclosed sum.

Stores will continue to trade under their current name, including four Fopp sites.

Mr Putman said: “We are delighted to acquire the most iconic music and entertainment business in the UK and add nearly 1,500 employees to our growing team.

“By catering to music and entertainment lovers, we are incredibly excited about the opportunity to engage customers with a diverse range of physical format content, and replicate our success in Canada.

“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.”

Will Wright, partner at KPMG and joint administrator, said: “We are pleased to confirm this sale which, after a complex process, secures the continued trading of the majority of the business.

“Our immediate concern is now to support those employees that have unfortunately been made redundant.”

Sunrise, founded in 1977, was acquired by Mr Putman in 2014 and went on to take over stores vacated by HMV Canada when it went bust.

By John-Paul Ford Rojas