HMV saved by Sunrise Records, but some stores will close

Canadian firm Sunrise Records has emerged as the buyer of collapsed music chain HMV, beating competition including Sports Direct owner Mike Ashley. The firm will buy 100 stores out of administration, securing 1,487 jobs. But 27 stores will close, resulting in 455 redundancies. Sunrise Records chief executive Doug Putman said he was “delighted to acquire the most iconic music and entertainment business in the UK.”

No price was given.

Canadian entrepreneur Mr Putman, 34, bought the retail chain Sunrise Records in 2014. He previously bought HMV’s Canadian business in 2017, expanding his small chain into a national operation with 80 outlets.

Mr Putman is also President of Everest Toys, the largest toys and games distribution company in North America. He said that HMV was a “fantastic, heritage brand”. He also said the chain would be looking to stock more vinyl records, in response to customer demand.

HMV owner Hilco, which took the company out of its first administration in 2013, has blamed a “tsunami” of retail challenges for the latest collapse.

These include business rate levels and the increasing use of streaming services to deliver music and movies.

HMV sold 31% of all physical music in the UK in 2018 and 23% of all DVDs, with its market share growing month by month throughout the year.

However, the music industry expects physical entertainment sales to shrink by another 17% this year.

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.”