HMV has sold its Canadian business to a division of restructuring specialists Hilco for £2 million. The money will be used to reduce debt levels.
The entertainment retailer began accepting offers for both its Waterstones and Canadian businesses earlier this year as it looked to raise some quick cash to help in its negotiations with its banks to restructure debts. Of course, Waterstones was sold to Russian billionaire Alexander Mamut in May, while a debt restructuring deal was confirmed earlier this month.
HMV CEO Simon Fox confirmed the sale yesterday, telling reporters: “The board has fully explored the options available to it for HMV Canada, and believes that a sale to Hilco is the correct decision for the business at this time, whilst reducing the operating leverage in the continuing Group. Having received shareholder approval for the disposal of Waterstones, and with a refinancing in place, the Group is focusing on clear and tightly defined plans for transforming HMV into a broad-based entertainment business”.
As Fox just said there, the aforementioned Waterstones deal was approved by HMV shareholders last week and is due to be finalised later today.