MUSIC retailer HMV has been rescued from administration by Canadian retailer Sunrise Records, saving 100 stores and 1,487 jobs.
But the deal didn’t include 27 unprofitable stores, meaning those will close immediately resulting in 455 job losses.
Administrator KPMG said it’ll keep 122 employees at warehouse functions to assist in winding down operations.
It was the second time HMV has collapsed in recent years, having filed for administration in 2013.
The owner of Sunrise Records, Doug 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.
“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.”
Meanwhile, 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.”
The Sun has asked Sunrise Records to clarify whether customers’ HMV gift cards will be honoured, but we haven’t yet heard back.
It’s also not yet clear which stores will shut its doors.
The news comes after almost 20,000 shops and restaurants closed their doors and 148,132 jobs were wiped out in the past year, end of year figures compiled by the Centre for Retail Research show.
Last year, shops suffered the worst Christmas since the financial crisis a decade ago as customer shunned the high street.
And last week, Tesco announced it’s cutting 9,000 jobs and closing fish, meat and deli counters in 90 stores.
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