Record store chain HMV has been bought out of administration by Canadian business Sunrise Records, although 27 branches will close.
The deal will see Sunrise buy 100 stores, securing 1,487 jobs. The store closures will mean the loss of 455 jobs, although it is not yet known which stores are affected.
The stores will continue to trade as HMV, with four stores continuing to trade as Fopp. The administrators will retain a further 122 employees in warehouse functions to assist them in winding down operations.
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.”
Doug Putman, chief executive of Sunrise Records 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.
“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.”