HMV The Iconic Music Company Is Bankrupt: All 102 Stores To Shut Down In Canada

The top music company of its times, HMV is finally ending its Canada business and closing all stores in the country. It is disappointing for many music lovers as the company over the years became an integral part of their homes and lives.

According to Billboard, it is the end of an era in the music business of Canada as all the 102 stores of the retail chain is going to be closed latest by April 30. As a part of the decision taken by HMV's parent company HUK 10 Limited, London, which itself is a part of Hilco Global, 60 out of its 1300 employees were shown the door on Friday, January 27th.

HMV had applied for reorganization in front of the Ontario Superior Court of Justice. Gordon Brothers Canada ULC and Merchant Retail Solutions ULC were appointed by Senior Judge Geoffrey B. Morawetz as lead agents to sell any leftover goods at the disposal of HMV to the deemed receiver financial consulting firm Richter LLP.

HMV has received the prestigious Canadian Music Retailer of the year Award a whooping 23 times given by the Canadian Music and Broadcast Industry. It is originally based out of Etobicoke, a part of Toronto, and has stores all over Canada ranging from Newfoundland to British Columbia opening since 1986. The flagship stores are located in all major cities like Vancouver, Edmonton, Toronto and Montreal. Even last year two more stores were opened.

When interviewed, Nick Williams, the CEO of HMV Canada told that the sales declined due to the rise in number of subscription services and online streaming facilities readily available at the disposal of the young generation. However, he added that efforts were being made to make the business once again stand on its feet despite its recent failure.

According to Musical Toronto, HMV was no longer able to pay its debt of almost $39 million. Deemed a profitable business chain until 2013, it has not been able to make a single payment since experiencing a decline in sales figures in 2014.

According to an affidavit, the music company will require a $2 million boost on an emergency basis to make its basic operations work. It also states that the parent company HUK 10 has declined the idea of further financing the retail chain looking at the situation of recurring losses HMV has been experiencing despite all efforts to revive its glory days.

The HMV Canada is a perfect example of the ill effects of the modern music readily available at the disposal of the new generation. It is an alarming situation for all traditional music companies and they must find innovative ways to rise up to the latest challenges.

TagsHMV, Canada, music, Nick Williams, Hilco