The joint administrators of HMV have confirmed the sale of the businesses and assets to Sunrise Records & Entertainment Limited, whose shareholder is Doug Putman, owner of Sunrise Records in Canada.
Sunrise Records & Entertainment Limited will acquire 100 stores across the UK, and 1,487 store and head office employees will transfer as part of the transaction. The stores will continue to trade as HMV, with four stores continuing to trade as Fopp.
The administrators will retain a further 122 employees at warehouse functions to assist them in winding down operations. Unfortunately, 27 stores have not been acquired, and will be closed with immediate effect, resulting in 455 redundancies.
Will Wright, Neil Gostelow and David Pike from KPMG’s Restructuring practice were appointed joint administrators on 28 December 2018. Will Wright, partner at KPMG and joint administrator said: “We are pleased to confirm this sale which, after a complex process, secures the continued trading of the majority of the business. Our immediate concern is now to support those employees that have unfortunately been made redundant.”
Gostelow, partner at KPMG and joint administrator, added: “We are grateful for the support of all key stakeholders including the suppliers whose support throughout this process has been key in securing this sale.”
Doug Putman, CEO of Sunrise Records, commented: “We are delighted to acquire the most iconic music and entertainment business in the UK and add nearly 1,500 employees to our growing team. By catering to music and entertainment lovers, we are incredibly excited about the opportunity to engage customers with a diverse range of physical format content, and replicate our success in Canada.
“We know the physical media business is here to stay and we greatly appreciate all the support from the suppliers, landlords, employees and most importantly our customers.”