HMV Canada has been announced bankrupt and are closing all their stores on what Canadians are calling “the day the music died”.
January 27th is the day that a judge in Ontario approved music, film and TV store HMV Canada’s bankruptcy filing, leading to the closure of over 100 stores and the end of Canada’s largest music retailer. Whilst music didn’t die that day, c’mon Canada, it’s a massive blow to the industry as it represents the continuing decline in physical music as digital downloads and music streaming take over the industry. However it may signify rubbish management even more.
The court filings show that HMV Canada owes $39 million to restructuring company Hilco UK, who bought HMV in 2011. Reportedly HMV hadn’t made payments to them for over 2 years whilst music and film distributors are also owed millions more by the entertainment retailer. All of their stores in Canada are currently liquidating stock and will be closed by the 30th April.
Hilco and it’s parent HUK 10 Ltd. wrote in their filings to the court that: “The company and major suppliers were unable to reach an agreement, on mutually acceptable terms to sustain HMV’s operations and support a recovery.”
HMV will continue to operate as normal in the UK and Hong Kong where it runs as a separate company. Whilst their international efforts aren’t going bankrupt (yet) the store is still facing hard times as they were forced to close almost half of their UK stores in 2014 as they went into administration.