The last of Canada’s big legacy record stores, HMV, has gone into receivership, with stores scheduled to close by April 3, 2017.
An application filed by HUK 10 Ltd., who bought the struggling HMV chain in 2011, was approved last week by Geoffrey Morawetz at the Ontario Superior Court of Justice.
The move comes after HMV could no longer make payments on its crippling debt to the tune of $39 million. The chain was profitable up until 2013, but after a significant decline in sales it has not made a single payment on the debt since November 2014.
According to the affidavit, HMV would require a $2 million emergency injection of funds to keep basic operations going.
The affidavit stated that HUK 10 has determined the decline of the iconic record store chain is likely to continue, and the business is no longer sustainable and would not provide further financial support.
There are currently 102 HMV stores operating across Canada, employing roughly 1,340 people.Sorry, there are no polls available at the moment.