HMV collapse will see closure of three stores in North West
Two flagship stores in Manchester are to close following the collapse of retailer HMV.
The two stores are the HMV branch in the Trafford Centre and the Fopp Store in Brown Street.
And administrators KPMG has also announced a store is to close in Southport.
Although 100 shops will remain open safeguarding 1,500 jobs a total of 27 branches will close with the loss of 455 jobs.
Around 40 jobs will go in Manchester and a further 122 warehouse jobs will be lost in the weeks to come.
Doug Putman, who owns Canadian retailer Sunrise Records, has bought the retailer beating off competition from Mike Ashley – owner of Sports
HMV went in administration after Christmas, blaming tough conditions on UK high streets and competition from streaming sites such as Netflix and Spotify.
Doug 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.”
The deal saves HMV from collapse for the second time in six years, after the restructuring firm Hilco bought the business in 2013.
Hilco called in administrators from KMPG in December, blaming an “extremely weak” festive trading season and “a tsunami of challenges” for retailers.
Neil Gostelow, a partner at KPMG and joint administrator, said: “We are grateful for the support of all key stakeholders including the suppliers whose support throughout this process has been key in securing this sale.”
Russ Mould, investment director at AJ Bell, said HMV’s long-term future remained uncertain, despite the sale.
“HMV survives to live another day. Its acquisition by Canadian group Sunrise will ensure the iconic British brand stays on the high street. Alas, one has to question whether it has a big opportunity under the new owner or whether it is still living on borrowed time.
“HMV is essentially relying upon the current revival in vinyl sales to keep it alive. [It] has been increasing market share, but the overall physical entertainment sales market is in decline. This backdrop doesn’t give much confidence to the brand being on the high street in 10 or 20 years’ time.”
The full list of closures:
BLUEWATER
BRISTOL Cribbs
CHICHESTER
EXETER Princesshay
FOPP BRISTOL
FOPP GLASGOW Byres
FOPP MANCHESTER
FOPP OXFORD
GLASGOW Braehead
GUERNSEY
HEREFORD
MANCHESTER Trafford
MERRY HILL
OXFORD STREET
PETERBOROUGH Queensgate
PLYMOUTH Drake Circus
READING
SHEFFIELD Meadowhall
SOUTHPORT
THURROCK
TUNBRIDGE WELLS
UXBRIDGE
WATFORD
WESTFIELD LONDON
WIMBLEDON
