Monday, February 20, 2017

HMV Canada closng, 100 stores shutting

Via Music Bus Worldwide from late Jan: "HMV's Canadian operation has fallen into receivership, with more than 100 stores set to close by April 30.

The news could have a devastating effect on the physical music business in Canada - the world's seventh biggest recorded music territory.

According to IFPI data, Canada generated US$335.8m (CAD$429.8m) for labels and artists in 2015. 35% of this revenue (US$118.9m) came from physical format sales - actually up 5% on the US$113.2m generated in 2014. HMV Canada Inc. was placed into receivership in Ontario Superior Court on Jan 27th.

"The company and major suppliers were unable to reach an agreement, on mutually acceptable terms to sustain HMV's operations and support a recovery," revealed court filings.

HMV Canada apparently owed its major suppliers, including music labels and movie studios, CAN$56m (US$42.6m) at the end of 2016.

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