Trisha Shetty (Editor)

HMV Canada

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Covid-19
Former type  Private
Fate  Receivership
Defunct  April 30, 2017
CEO  Nick Williams (2009–)
Parent organizations  HMV, Hilco
Industry  Retail
Successor  Sunrise Records
Headquarters  Etobicoke, Ontario
Founded  1986
HMV Canada httpsuploadwikimediaorgwikipediacommonsthu

HMV Canada Ltd. is a retailer in Canada, owned by Hilco. The company was originally a subsidiary of HMV in the United Kingdom until it was sold to Hilco in 2011. HMV itself would later be bought by Hilco in 2013. HMV Canada's head office is located in Etobicoke.

Contents

History

HMV Canada was established in 1986 by the purchase of the Mister Sound chain by EMI Music Canada. Stores in the country did not have rights to the "His Master's Voice" trademark, as it was owned by Technicolor SA and licensed out. HMV Canada's application for use of the trademark was abandoned in 2010. Though the initials "HMV" originally came from the His Master's Voice trademark, HMV was not prevented from using its initials in Canada. In some radio and television commercials in the 1990s, HMV Canada used "HMV" as an acronym for "hot music values".

In 2005 HMV Canada took over a Virgin Megastore in Vancouver, allowing it to own, "Canada’s largest store dedicated to music and DVD".

In the two decades to 2006 HMV was awarded "Canadian Music Retailer of the Year".

In June 2010 HMV Canada launched purehmv, a customer rewards program that offered store discounts and exclusive items across music, film, and gaming in exchange for points gained in-store. Over 300,000 customers joined the program in its first four months.

In June 2011 HMV sold its Canadian stores for £2 million to Hilco UK, a firm specialising in retail restructuring.

On 3 November 2011 HMV announced that its flagship store in Downtown Vancouver would close in January 2012, that a smaller location would open in a different area of Downtown Vancouver at some time in the future, and that the location in Richmond Centre would be closed.

As of late 2012, Hilco had been successful at restructuring HMV Canada and there were no plans to cease operations despite rumours stating otherwise. Under CEO Nick Williams, HMV Canada focused on growing back-catalogue music and movies not found at discount rivals, while also carrying higher-margin merchandise like gifts, collectibles, clothing and headphones, while ditching video games and technology hardware. By contrast, former parent HMV Group remained under pressure due to stronger online competition and continuing to sell low-margin video games and computers.

As of 2012, HMV had 113 stores in Canada, down from 121 when it was sold by HMV Group. However, Hilco has also opened several new stores, such as the one in Peter Pond Mall in Fort McMurray.

Demise

By 2014, HMV's profits began to decline, with Hilco citing online media consumption as a factor. As of 2017, the company had $39 million in debt, and Hilco stated that "these financial difficulties, combined with the further decrease in sales expected over the coming years, means the current situation is not sustainable." On January 27, 2017, HUK 10 Ltd., the subsidiary that owns HMV Canada, filed for receivership in the Ontario Superior Court, and announced plans to close all remaining HMV locations by April 30, 2017. HMV locations will hold clearout sales of their remaining inventory.

On February 26, 2017, the Canadian Press reported that Ontario-based chain Sunrise Records had negotiated leases to take over 70 of HMV's locations in an effort to expand nationally, and will invite 1,340 former HMV employees to apply for 700 positions. HMV's flagship location on Yonge Street in Toronto was one of the 30 locations that were not part of the deal.

References

HMV Canada Wikipedia


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