HMV has become profitable again

HMV has become profitable again

British entertainment chain HMV has become profitable again, within 2 years after it was declared bankrupt. Hilco, a company that also looked at Free Record Shop, helped its restart.

Every store is profitable

 

When it went bankrupt in January 2013, it had 170 million pounds (218 million euro) in debt, which put the 223 stores on the brink of closure and that would have cost 4,000 employees their job. Hilco assisted in the restart and helped save 140 stores.

 

In the period from 29 January 2013 to 28 December 2013, HMV managed a 311.2 million pound (398.6 million euro) turnover and a 16.7 million pound (21.4 million euro) company profit. Hilco has said that every HMV store is currently profitable thanks to a thorough restructuring. Rental prices and supplier conditions have been altered, which have helped lower costs.

 

Deal with record labels

 

To lure more people into its stores, HMV has signed deals with large record labels and film studios. Performances, among others, have helped promote artists and movies.

 

When entertainment chain Free Record Shop went bankrupt in Belgium and the Netherlands, Hilco was (fleetingly) interested to buy (a part) its stores. The deal fell through in the end, while Hilco wanted to use its HMV contacts to get Free Record Shop back on track.

Questions or comments? Please feel free to contact the editors


Samsung targets record fourth quarter profit

09/01/2018

Korean technology firm Samsung has released preliminary quarterly results indicating it forecasts record profits in 2017’s fourth quarter. Nevertheless, it does not seem it can live up to analysts' expectations.

MediaMarkt's co-founder passed away

28/12/2017

Erich Kellerhals, co-founder of electronics chain MediaMarkt, has died on Christmas day, aged 78. The German laid the foundation for one of the world’s largest electronics chains in 1979.

Media Markt's parent company thrives thanks to online

19/12/2017

Media Markt and Saturn’s new parent company, CECONOMY, has performed well in its fiscal year 2016/2017. Its 1.3 % turnover increase was largely thanks to improved online sales.

Carrefour and Fnac Darty consider purchase alliance

01/12/2017

Supermarket firm Carrefour and electronics seller Fnac Darty are considering an alliance for their electronics acquisitions. The combination could lower purchase prices.

Media Saturn launches a first, fully virtual shopping world

21/11/2017

Saturn customers can use their own VR goggles to see products in two virtual environments. It is not yet possible to actually buy something in VR however.

Pieter Haas, CEO Ceconomy: "We sell the consumer a digital life"

03/11/2017

MediaMarkt’s parent company, Ceconomy, has the key to consolidate the European electronics industry even more. The retailer will sell services and solutions: “We help people make the right decisions.”

Back to top