HMV sells Canada stores

Beleaguered retailer HMV took another step in its restructuring today by announcing a deal to sell its 121 stores in Canada.

The sale of HMV Canada to retail restructuring firm Hilco for £2m (€2.25m) follows the group’s recent agreement to offload Waterstone’s to Russian billionaire Alexander Mamut for £53m (€59.73m).

The disposals, which will enable HMV to focus on its estate of around 260 stores in the UK and Ireland, have enabled chief executive Simon Fox to secure a new £220m (€247.95m) borrowing facility covering the next two years.

HMV Canada’s first store opened in 1986, from which it has grown to become a market leader with flagship stores in Toronto, Edmonton and Montreal and sales of £222m (€250.2m) in its last financial year.

Mr Fox said: “Having received shareholder approval for the disposal of Waterstone’s, and with a refinancing in place, the group is focusing on clear and tightly defined plans for transforming HMV into a broad-based entertainment business.”

HMV, which has been rocked by competition from supermarkets and internet downloads, hopes to revive its core business by selling more gadgets such as iPads and iPods and developing its live entertainment division.