HMV has been sold to the Canadian music entrepreneur Doug Putman. The deal will see 100 stores saved, but will result in 27 closing. Additionally, 1,500 jobs have been saved by the deal.
At the end of December, HMV slipped into administration for the second time. Following tough trading over the Christmas period, KPMG were appointed as the group’s administrators. Over 2,000 jobs were put at risk.
Will Wright, partner at KPMG and joint administrator, told Sky News:
“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.”
However, Doug Putman, owner of the Canadian retailer Sunrise Records, purchased the film and music retailer. He emerged as the leading contender over the weekend, ahead of Sports Direct boss, Mike Ashley.
The deal will see 27 of HMV’s stores immediately close, along with the loss of 455 jobs.
Moreover, an additional 122 warehouse jobs will be lost over the next few weeks.
Doug Putman commented on the acquisition of HMV, Sky News reports:
“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.”
According to the Guardian, Doug Putman has said that the 27 stores will close as a result of high rent:
“Unfortunately, as rents continue to go up it’s not feasible to keep those stores.”
“You can only lose so much money on those stores before you need to make a change. Unfortunately rents are just very high at this time.”