Sun to set on HMV despite sunrise rescue
National music chain HMV is on the brink of collapse, despite being saved from administration by Canadian music retailer Sunrise Records.
Many of the stores across London have announced they are closing, including the HMV in intu Uxbridge and Westfield’s London Shepherd’s Bush.
It was announced that 455 workers will be made redundant as a result.
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.”
Music habits are changing from buying albums to streaming them on devices. Streaming services such as Apple Music and Spotify, have prompted the highest growth in UK music consumption since the late 1990s.
According to Entertainment Retailers Association (ERA), on the market level, digital revenues now dominate all three sectors, with digital generating 80.1% of games revenue, 72.3% of video and 71.3% of music.
ERA CEO Kim Bayley said: “On a market level these figures are a stunning testament to the investment and innovation of digital services who have transformed the fortunes of an entertainment industry many had thought was doomed by the internet and piracy. The data shows that if you want a real mass market hit, you need the reach and convenience of physical formats.
Doug Putman, CEO of Sunrise Records, commented: “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.
“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.”
@DxntLetMeFxrget on twitter said: “Actually so upset about so many HMV stores closing down. So many fond memories of rushing to buy physical albums the day they come out and dragging friends/family around the country.”
@DBDclothing on twitter said: “I think HMV closing down 60 stores is positive. Opens up retail space opportunities for smaller, more interesting ventures.”