HMV’s flagship branch is CLOSED after almost 100 years on Oxford Street: Unprofitable store is among 27 axed after Canadian retailer Sunrise Records buys music giant with 1,500 jobs saved
- Sunrise, owned by Doug Putman, will have 100 UK stores employing 1,487 staff
- But 27 stores will close with immediate effect, resulting in 455 redundancies
- Closures include its flagship Oxford Street store, first opened on street in 1921
- Sports Direct billionaire Mike Ashley was also vying to take over the music chain
HMV has announced its flagship Oxford Street store has been closed – almost 100 years after the company first opened on London’s busiest shopping strip.
The music business has been bought out of administration by Canadian retailer Sunrise Records – but 27 stores will close with immediate effect, resulting in 455 redundancies.
Sunrise, which is owned by music mogul Doug Putman, will keep open 100 stores across the UK, securing the future of 1,487 store staff.
The Oxford Street store is shut permanently today – HMV first opened on the shopping street in 1921.
HMV, whose flagship store is in Oxford Street, London, has today been bought out of administration by Canadian retailer Sunrise Records
Sunrise boss Mr Putman said: ‘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’.
Sports Direct billionaire Mike Ashley had been vying to take over the music chain but lost out.
‘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.’
HMV became the first high street casualty after Christmas when its then owner Hilco called in corporate undertakers in December.
It was the second time HMV has collapsed in recent years, having filed for administration in 2013.
HMV, short for His Master’s Voice, has had a store in or around Oxford Street since the 1920s. Crowds are pictured outside the store in 1955
The likes of Poundworld, Toys’R’Us and Maplin all went bust last year amid brutal trading, while heavyweights Marks & Spencer and Debenhams announced plans to shutter hundreds of stores.
Several others – including Superdry, Carpetright and Card Factory – have all issued profit warnings.
Doug Putman’s Canadian company has bought 100 HMV stores across the country
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.’
Neil 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.’
Retail tycoon Mike Ashley had demanded HMV’s landlords give him six months of free rent if he took over the collapsed music chain.
Ashley wrote to HMV’s landlords requesting the rent holiday as part of his deal to take over the company.
He was one of several parties to put in a formal offer with KPMG, which was in charge of HMV’s administration, before a deadline of January 15.
The 54-year-old Sports Direct founder has already bought Evans Cycles and House of Fraser in cut-price deals within the last six months.
Speculation was mounting that he was plotting a merger between HMV and Game Digital, in which he has a more than 25pc stake.
The demise of HMV underlined the crisis gripping the High Street as firms face rising costs, crippling business rates bills and fierce competition from online rivals.