Now that the purchase of HMV by Canadian music retailer Sunrise is settled, we are able give a further update on the HMV administration and purchase, based on information received by AIM.
As was widely reported, HMV went into administration on 28th December 2018 and was finally purchased by Canadian music retailer, Sunrise at the start of February 2019. Sunrise also purchased HMV in Canada in 2017 and operates the chain successfully there so we were delighted by this development and believe it is a good outcome for all involved.
AIM has been in contact, throughout this process, with key independent distributor members and supported their strong and pragmatic approach which has led to what seems on the whole to be a positive outcome in the successful purchase of the business whilst ensuring independents were taken seriously and negotiated with fairly. This was a complex situation and we hope you will join us in supporting their handling of it.
We understand that payment of invoices for the period of trading under administration are being made by administrators, KPMG, and that Sunrise are currently ensuring all supplier deals are in place, looking towards successful future trading. If you have any concerns about this you should contact your physical distributor in the first instance but if you are not able to get the response required, can contact Gee or Paul.
There are however still concerns and uncertainty about payments for invoices owing as of the date of administration. Additionally, AIM understands that there are currently difficulties in accessing stock in some of the stores that must close, for recirculation or repatriation. We understand now that more than the initially reported 100 stores, the vast majority, will remain open but in some cases the stock in the closing stores is not currently accessible.
AIM hopes that store landlords and Sunrise will be able to work together to ensure the speedy release of this stock. Musicians and labels may already have financial issues due to non-payment of invoices and release of the stock will help mitigate losses via income from its sale. This needs to happen before too much time has elapsed since release dates to have any real positive impact on finances.
AIM is still monitoring these issues as they develop and will continue to update you, but do please contact Gee or Paul if you would like to discuss any concerns or difficulties you are facing in relation to this issue.