HMV Canada Inc., a music chain company that first opened in Canada in 1986 is set to close its stores nationwide. According to reports because of the rise of the digital music and video streaming and the continuous shift of customers with the use of media, the company was badly affected and was continuously losing especially in North America, thus, HMV Canada has been experiencing hard times in recent years.
Reports indicated that HUK 10 Ltd., which lent money to HMV, filed the application to put the chain into receivership to the Ontario Superior Court on January 26 (Thursday) and was approved on January 27 (Friday). A sworn affidavit submitted by HUK 10 director Christopher Emmott claimed that HMV owes almost $39 million and has received no cash payments since November 2014. To continue operations, HMV would requite an “immediate cash injection” of $2 million and then $5 million of additional cash injections every year after that, the affidavit added.
According to the sale guidelines issued Ontario Superior Court of Justice after approving the application to place HMV Canada Inc. into receivership, HMV stores must cease operations and its stores by April 30.
Source: Toronto Star: HMV in receivership, stores to close by Apr. 30