An Ontario superior court of justice approved an application to place HMV Canada inc. into receivership on Friday and is ready to shut all its stores within a few months.
HUK 10 Ltd., a creditor to the struggling chain, filed the application to the court on Thursday and it was approved on Friday.
It emphasized HMV owes it almost $39 million and it has gotten no money installments since November 2014.
As clients turned towards online media for their music and videos as of late. HMV would require between $2 million and $5 million every year in cash to remain open and the company was losing $100,000 a day, according to court filings.
Senior Justice Geoffrey B. Morawetz affirmed the application and chose Gordon Brothers Canada ULC and Merchant Retail Solutions ULC as the agent to sell HMV’s outstanding stock.
Legal documents state that closing stores must stop operations by April 30.
HMV works 102 stores in Canada and employs around 1,340 individuals, a large portion of them at its retail stores.