HMV Canada Inc. Closing its Doors; it is Broke!
HMV Canada Inc. supposedly owes HUK 10 Ltd. almost $39M and is unable to pay back the loan. HMV operates 102 stores in Canada and employs about 1,340 people, most of them at its retail locations.
So, HUK Ltd filed for the company to be placed into receivership. The application was obviously approved by an Ontario Superior Court of Justice. Senior Justice Geoffrey B. Morawetz precided over the case.
He chose Gordon Brothers Canada ULC and Merchant Retail Solutions ULC as the agent to sell the company’s remaining merchandise.
HMV has been struggling to keep it doors open: it needs between $2M and $5M per annum in order for that to happen. And on the other hand, the company was losing $100,000 per day!
The company will close its doors on the 30th of April this year.
