THREE HMV stores are set to close in Scotland despite the chain being acquired out of administration by Canadian retailer Sunrise Records.
Sunrise, owned by Doug Putman, beat off competition from the likes of Mike Ashley for the stricken retailer and will acquire 100 stores across the UK, safeguarding the future of nearly 1,500 staff.
But 27 unprofitable stores will close with immediate effect, resulting in 455 redundancies.
In Scotland, this includes the HMV stores in Ayr and Braehead Shopping Centre, as well as the Fopp store on Glasgow’s Byres Road.
In response to the news, Mogwai’s Stuart Braithwaite tweeted: “Sad to see Fopp on Byres Road on the list of shops closing due to HMV going under new ownership.
“The staff there are lovely and it’s been a great place to buy music for as long as I remember.”
Sad to hear that Fopp's Byres Road branch is closing. That's been a regular haunt for me since I went to Glasgow Uni in 1990. Best wishes to the staff, devastating for them.
— caroline mckenzie (@auto_tech_pilot) February 5, 2019
Genuinely heartbroken to have Fopp on Byres road shutting down ? the staff there are amazing
— I'm Human After All (@Jenny_Manics) February 5, 2019
It’s truly heartbreaking to see Fopp on Byres Road close. I’ve been a regular there since I bought Doolittle by @PIXIES back in 89
— Michael Scanlan (@ScanlanWithAnA) February 5, 2019
Administrator KPMG will retain a further 122 employees at warehouse functions to assist in winding down operations.
Mr 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.”
HMV became the first high street casualty after Christmas when its then owner Hilco called in corporate undertakers in December.
It was the second time HMV has collapsed in recent years, having filed for administration in 2013.
The likes of Poundworld, Toys’R’Us and Maplin all went bust last year amid brutal trading, while heavyweights Marks & Spencer and Debenhams announced plans to shutter hundreds of stores.
Several others – including Superdry, Carpetright and Card Factory – have all issued profit warnings.
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.”
Neil Gostelow, partner at KPMG and joint administrator, added: “We are grateful for the support of all key stakeholders including the suppliers whose support throughout this process has been key in securing this sale.”
Full list of closures:
Fopp Glasgow Byres
Plymouth Drake Circus
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