Once the dominant music-seller in the country, HMV Canada was put into receivership on Friday (Jan. 27) and is now beginning the process of closing all of its operations, including 100-plus bricks-and-mortar locations.
According to Ontario Superior Court documents — filed on behalf of HMV Canada by its parent, HUK 10 Limited London, part of Hilco Global — the retailer owed its major suppliers $56 million as of Dec. 31, 2016.
Launched in April 1987, HMV Canada took over 42 Mr. Sound and Sherman Sound stores and quickly became the country's dominant music seller. Like its parent company in the UK, HMV Canada shook up music retail and dazzled Canadian customers with mega stores, high-tech displays and a wider selection of vinyl, cassettes and CDs compared to smaller record shops.
In recent years, as digital music and video downloads ate into physical sales, HMV expanded into vinyl, t-shirts and collectibles.
According to its receivership filing, HMV Canada sales were down to $193 million at the end of 2016, and the retailer lost approximately $20 million between the 2013 and 2015 fiscal years. It currently operates retail locations in nine provinces.