HMV Canada is to close all of its 102 stores over the coming months, as the company goes into receivership after 30 years.
The struggling retailer was put into receivership by the Ontario Superior Court on Friday, with the majority of its senior staff laid off as a result. As of December 31 2016, the company owes suppliers, including record labels and studios around $56 million, according to the Financial Post.
“The company and major suppliers were unable to reach an agreement, on mutually acceptable terms to sustain HMV’s operations and support a recovery,” said a court filing.
Stores will remain open for the next few week in order to liquidate stock.
A court filing revealed that HMV Canada’s sales dropped to $214.4m in 2015 from $225m the previous year. Those sales, said the FP, are expected to fall to $190m for fiscal 2016.
The company had assets of $63.9m and liabilities of $131.8m as of November 30 2016.
HMV’s UK operation declined to comment as to whether or not the Canada closures posed any implications for the UK market. However, having functioned as a separate entity since retail restructuring firm Hilco UK purchased HMV Canada for $3.32m in 2011, the UK business is not expected to be affected.