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HMV raises £2 million with Canadian sale

Cash sale will go towards paying off debts, says entertainment chain

Entertainment retailer HMV has sold its Canadian business to Hilco UK for £2 million in cash.

For the year ended April 24, 2010, HMV Canada generated sales of £222 million and an operating profit of £2.3 million. HMV said it will use the proceeds of the sale to pay off debt.

"The Board has fully explored the options available to it for HMV Canada, and believes that a sale to Hilco is the correct decision for the business at this time, whilst reducing the operating leverage in the continuing Group," commented Simon Fox, chief executive.

As well as a local website, HMV Canada consists of 121 stores across the region.

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Matt Martin

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Matt Martin joined GamesIndustry in 2006 and was made editor of the site in 2008. With over ten years experience in journalism, he has written for multiple trade, consumer, contract and business-to-business publications in the games, retail and technology sectors.