HMV and Xtra-vision business to make ‘substantial profits’ this year

The combined HMV and Xtra-vision business in Ireland is to make "substantial profits" this year.

That is according to Larry Howard, managing director of Hilco Capital Ireland, the company which purchased HMV from receiver Deloitte last year.

The turnaround specialists are now operating 107 stores under the Xtra-vision and HMV brands in Ireland, with Ballymena set to be the ninth standalone HMV store when it opens at the end of the month.

Some 46 stores operate under the dual brand, with the remainder Xtra-vision only.

“We will make substantial profits this year after making substantial profits last year,” Mr Howard said.

Hilco has already pumped €2.7m into rejuvenating the HMV business here and Mr Howard added: “Everything is all good and business has been very strong. The performances of the Xtra-vision and HMV brands have been a major success.”

He pointed out that physical sales of CDs and DVDs still account for 66% and 70%, respectively, of all sales in Ireland.

“The market for DVDs and CD music is up in Ireland this year. That may be down to the old HMV business shutting down last year, but it is still a positive.”

Mr Howard confirmed that HMV/Xtra-vision now employ 1,100.

He was commenting, yesterday as new documents show that the receiver to HMV Ireland Ltd has, to date, received over €475,000 in fees and expenses since the firm went out of business in January last year.

The documents show David Carson of Deloitte received €176,406 between January 1 and July 15 this year, in addition to the €300,495 he received between January 2013 and January this year. He has received nearly €1.3m from the sale of assets to ‘various’ purchasers between January and July.

Former employees have received €446,800 over the same period.